GM 3Q17 earnings were released before opening bell this morning. The automaker reported adjusted earnings of $1.32 per share on $33.6 billion in sales, while analysts had been expecting earnings of $1.12 per share on $33.72 billion in revenue. In last year’s third quarter, General Motors reported earnings of $1.72 per share on $42.8 billion in sales.
GM swings to a loss
On a GAAP basis, GM 3Q17 earnings were actually a loss of $2.03 per share or $2.98 billion, compared to the year-ago net profit of $1.17 per share or $2.77 billion. The non-GAAP adjusted EBIT margin contracted 1.9 points to 7.5%. The automaker said it was the first time it posted an adjusted profit in all business segments since the fourth quarter of 2014.
Wholesale volumes declined to 268,000 due to planned downtime in the automaker’s North American operations. U.S. dealer inventories declined by 160,000 units to 821,000 vehicles as of the end of September versus the end of June.
General Motors delivered 781,056 vehicles in the U.S. during the third quarter on the back of a 25% increase in retail crossover sales. It was the best third-quarter performance for crossovers in the automaker’s history. The automaker also delivered a record number of vehicles in China during the quarter at 982,311, a 12.3% year-over-year increase. In South America, the automaker delivered 179,421 vehicles, a 17.6% increase.
GM 3Q17 earnings boost shares
“We delivered solid results even with planned, lower third-quarter production in North America, GM Chairman and Chief Executive Mary Barra said in a statement. “We are managing the business with discipline to drive strong performance today, while investing in higher-return opportunities, including those that will shape the future of transportation.”
Following the GM 3Q17 earnings release, the automaker’s stock surged in premarket trades, climbing by as much as 4.25% to $47.07.