=General Motors (GM) reported earnings on Wed 31 Oct 2018 (b/o)

General Motors beats by $0.62, beats on revs; sees Adj-EPS at top of previous range, with potential upside

Reports Q3 (Sep) earnings of $1.87 per share, excluding non-recurring items, $0.62 better thanthe S&P Capital IQ Consensus of $1.25; revenues rose 6.4% year/year to $35.79 bln vs the $34.85 bln S&P Capital IQ Consensus.

GM delivered nearly 700,000 vehicles in the U.S. in the third quarter. Average transaction prices rose to a third-quarter record of more than $36,000, up about $800 per unit year over year and $4,000 above industry average.

Commentary:

• Continue to take actions to mitigate global economic conditions
• Launch of full-size pickup trucks and Cadillac XT4 performing well; launch of Chevrolet Blazer coming in Q4
• Cruise - Based on current rate of iteration, continue to target commercialization in 2019 in a dense urban environment

Coreaffirms guidancefor FY18, sees EPS of $5.80-6.20, while commenting that EPS is expected to be at the top of previous range due to favorable tax rate & strong performance, with potential upside, excluding non-recurring items, vs. $5.88 S&P Capital IQ Consensus.