11:22 AM EDT, 10/22/2024 (MT Newswires) -- General Motors ( GM ) reported bigger-than-expected gains in third-quarter results on Tuesday and lifted the mid-point of its 2024 earnings guidance.

Revenue increased to $48.76 billion for the three months ended Sept. 30 from $44.13 billion a year ago and topped the $44.38 billion average analyst estimate on Capital IQ. Adjusted earnings per share advanced to $2.96 from $2.28 and beat the Street's $2.43 view. Shares of GM climbed 8.5% in Tuesday trade.

"In the third quarter, we grew US retail market share with above-average pricing, well-managed inventories and below-average incentives," Chief Executive Mary Barra said in a letter to shareholders. GM's North America market share edged up 10 basis points to 15.9% but dipped to 6.7% from 7.3% on a worldwide basis.

GM's internal combustion engine, or ICE, vehicles maintained "strong pricing compared to the industry," Chief Financial Officer Paul Jacobson told analysts on a conference call, according to a Capital IQ transcript. "Our highly profitable full-size pickup and full-size (sports utility vehicles) continue to gain market share in their respective segments," he said. A pull forward of some SUV production to support upcoming model launches helped boost earnings before interest and tax for the third quarter, according to Jacobson.

In China, GM and its joint ventures grew sales 14% sequentially for its best performance since the third quarter of 2022, Barra said on the call. "Our growing portfolio of (electric vehicles) and plug-in hybrids played a key role," she said. "In fact, our new energy vehicles outsold ICE models for the first time."

For the full year, the automaker now expects adjusted EPS in the $10 to $10.50 range, lifting the lower end of its previous outlook from $9.50. The consensus is for normalized EPS of $10.17 in the ongoing year. GM increased its automotive free cash flow target to between $12.5 billion and $13.5 billion from a prior guidance between $9.5 billion and $11.5 billion. The company is on track to produce and wholesale about 200,000 EVs in North America this year and become a "variable profit positive" in the fourth quarter, Barra told analysts.

"We are working with urgency to make our EVs profitable on an (earnings before interest and taxes) basis as quickly as possible," she said. The company's total share of the EV market is "approaching 10%," Barra said.

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