General Motors Company (NYSE:GM) shares are trading higher on Tuesday after the company reported its third-quarter results. Quarterly adjusted earnings per share of $2.96 beats the street view of $2.43. Quarterly sales of $48.757 billion (+10.5%) beat the analyst consensus estimate of $44.585 billion. Get the full report on benzinga.com.
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00:00And we'll start with GM here, General Motors, reported earnings this morning. I'm just going
00:06to go straight to my pro, bring it to you guys here. So the EPS came in at $2.96, beat the $2.43
00:13estimate. Sales came in at 48.75 billion, beat the 44.58 billion. So all in all, I mean,
00:22you got that double beat strong on both EPS and sales, and it raised its 2024 guidance.
00:29So basically all good from GM adjusted EPS to $10 to $10.50 from $9.50 to $10.50. So
00:37again, raised on the high end of guidance there, but the market must've had
00:40some high expectations here because you're seeing the stock actually down on this report,
00:45trading down about 50 cents. So not much. And it did pop higher initially
00:50before giving up those gains. How high did we get?
00:53We got to, let's go here to my chart. Let's go to a two minute chart here. We got to
00:59$51 on the dot and then came all the way down to 48.5.
01:04Okay. Groundhog day at General Motors because this exact same thing happened last quarter. At
01:09least that's what I remember. I didn't write it down, but I can remember it having the good
01:13earnings. Do you remember this AB? Had the good report General Motors. It was trading up 10%
01:19in the pre-market General Motors on their report. They were just killing it.
01:23And then it started to leak, and then it started to leak, and then it started to leak,
01:27and it actually ended up going red. And then ended up that day, I believe, closing down $3.
01:32So I feel like it's the exact same thing happening here where General Motors comes out,
01:36kills it, raises guidance, stock gets the pop that you think it should.
01:41And then the market's just like, no, we still don't believe we're going to continue to do well.
01:46The market's again concerned. General Motors is another stock that's going to be affected
01:50by rates as well. But for whatever reason, even though General Motors keeps firing on
01:55all cylinders, investors just don't give it the love. They give it the initial spike.
01:59The algos give it the love. The algos had it up 10% last quarter. I remember that.
02:04And they turned around and went red. So they had it up about two points,
02:08they had it up about 4% to 5% here this morning, but now it's turned around and went red.
02:13So same story. Trading is all about patterns and recognizing patterns. So if you were buying
02:18General Motors this morning, up two bucks saying, wow, they killed it, I want to own this stock,
02:22you weren't paying attention to what happened last quarter, and you're being punished for it.
02:28Yeah. And no, you're exactly right with what happened last time. I remember that,
02:33the fact that GM's up on that. The earnings themselves look great. I'll go back to it
02:37in pro, because you had- They look good.
02:39You had the EPS beat by 56 cents. You had revenue beat by $4.3 billion. So you're talking about
02:47significant beats here on both EPS and sales. Guidance raised as well, and yet the stock is
02:53down. So I guess let's set a reminder for next time GM reports earnings, Dennis, because it
02:58seems like no matter what the numbers are, the thing is going to end up selling off.
03:02Imagine if they missed. Imagine if they actually lowered guidance and missed. I mean,
03:06the stock's down on a pretty darn good report. Last time, the same thing. They hate the stock.
03:12The market just does not give it the love that maybe it deserves. I mean, they've really
03:17navigated. We talk about stocks navigating higher rates well. General Motors navigated it pretty
03:23darn well. But some other story is happening here. We have glimpses and I have thoughts,
03:29obviously, I've said before of the other story that could be happening for them.
03:32But in any regard here, I just think that they're just not interested in owning General Motors and
03:38automotive stocks that are trading at really cheap valuations. But maybe they're cheap for
03:42a reason. Maybe we're going to own less cars in the future. Maybe there's going to be more
03:45competition coming from EV, which they're not. They're participating in EV, but they're obviously
03:50the focus hasn't been as much as it was before. They've backed off the focus there to a certain
03:56extent. So there's obviously investor concern for something there because the numbers themselves
04:01look pretty darn good.