Key Stats for General Motors Stock
- Price change for General Motors stock: 5%
- $GM Stock Price as of Jul. 21: $80
- 52-Week High: $88
- $GM Stock Price Target: $96
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What Happened?
General Motors (GM) stock jumped almost 5% on Tuesday to close at $79.52 after the company beat Wall Street’s Q2 expectations and raised its full-year guidance.
Adjusted earnings per share came in at $3.57, well ahead of the $3.20 analysts expected. Revenue hit $48.03 billion versus the $47.01 billion forecast.
GM raised its full-year adjusted EBIT guidance to a range of $14 billion to $16 billion, up from its earlier range. Adjusted EPS guidance moved up to $12 to $14 per share, and the company also raised its free cash flow outlook to between $9.5 billion and $11.5 billion.
CFO Paul Jacobson called General Motors stock a “bargain” even after its more than 40% climb over the past year, pointing to first-half earnings per share that came in 25% higher than any first half in company history.
North America drove much of the strength. The region posted an 8.6% EBIT margin, up 2.5 points from last year, thanks to steady vehicle pricing, lower warranty costs, and shrinking losses on electric vehicles.
CEO Mary Barra credited the company’s truck and SUV lineup, along with disciplined pricing, noting the average vehicle transaction price landed around $52,000 for the quarter.
Not everything moved higher, though.
GM lowered its guidance for net income attributable to stockholders, now expecting $8.4 billion to $9.8 billion, down from a prior range of $9.9 billion to $11.4 billion. This marks the second straight quarter GM has cut that particular forecast even while raising other numbers
GM also gave an update on its EV pullback.
The company has recorded $10.9 billion in EV-related charges since the second half of last year and has already paid $4.5 billion of an expected $7.2 billion in cash charges tied to that restructuring.
Management said it has “substantially” completed the bulk of those costs.
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What the Market Is Telling Us About General Motors Stock
The nearly 5% jump in General Motors stock shows investors are rewarding a company that’s delivering on multiple fronts at once: better pricing, lower warranty costs, and a shrinking EV drag.
The fact that GM raised guidance for the second time this year adds to the sense that momentum is real, not just a one-quarter surprise.
Still, the guidance cut on net income is a reminder that not every metric is moving in the same direction.
For now, though, the market appears focused on the bigger picture: stronger core operations, rising free cash flow expectations, and a truck and SUV business that continues to lead the way for General Motors stock.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
