General Motors and Sprint released their latest earnings reports before opening bell this morning. GM posted $1.72 per share in earnings and $42.8 billion in sales. Analysts had been expecting $1.45 per share in earnings and $39.3 billion in sales for the third quarter.
Sprint reported losses of 4 cents per share, compared to last year’s losses of 15 cents per share. Revenue jumped to $8.25 billion from $7.98 billion. Analysts had been expecting $8.05 billion in revenue.
General Motors’ Q3 net income skyrockets
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General Motors’ net income rose 104% to $2.8 billion, while its adjusted EBIT increased 14.4% to $3.5 billion. The adjusted EBIT margin was 8.3%. Adjusted EBIT for North America amounted to $3.5 billion. GAAP earnings surged 110% to $1.76 per share.
The automaker sold 2.4 million vehicles in the third quarter, representing a 3.8% year over year increase. Year to date, GM has sold 7.2 million vehicles. General Motors’ retail market share in the U.S. grew faster than that of any other automaker in the third quarter, rising 0.4 of a percentage point year over year. The ATP was $35,700, which was nearly $5,000 higher than the average.
Management said strong performance in the U.S. and China boosted the company’s overall results. General Motors expects full-year earnings per diluted adjusted share to be toward the high end of the previously given range of $5.50 to $6 per share.
Shares of GM rose by as much as 0.39% to $33.11 in premarket trades.
Sprint increases guidance
Sprint added 347,000 postpaid phone subscribers during the second fiscal quarter, which was more than double the number it added in the previous quarter and an increase of more than five times year over year. The postpaid phone churn rate fell to 1.37%, the lowest in the history of the company. Postpaid phone gross adds rose almost 20% compared to the year-ago quarter. Adjusted EBITDA was $2.35 billion, compared to $2.01 billion in the same quarter last year.
Sprint upped its operating income outlook for the full year from a range of $1 billion to $1.2 billion to between $1.2 billion and $1.7 billion. The company still expects adjusted EBITDA for the year to fall between $9.5 billion and $10 billion and adjusted free cash flow to be about breakeven.
Shares of Sprint declined by as much as 1.59% to $6.81 in premarket trading this morning.