General Motors Beats Third-Quarter Estimates

General Motors surpassed Wall Street expectations for the third quarter. The company announced a new 20 billion dollar share buyback program following the completion of a previous 6 billion dollar phase.

The automaker revised its annual targets for adjusted earnings per share. It set a midpoint of 13.25 dollars. This figure fell short of the average analyst expectation of 13.41 dollars per share for the year-end.

Automotive free cash flow projections were raised to a range between 11.5 billion and 12.5 billion dollars. The company also adjusted its estimate for earnings before interest and taxes to a range between 14.5 billion and 15.5 billion dollars.

Costs related to commodity inflation are expected to reach 2 billion dollars. This hits the upper limit of the company's previous projections. The scenario reflects higher expenses for logistics and electronic components such as DRAM memory chips.

The market reacted with caution to the results and the outlook for next year. Analysts note that pressure on vehicle pricing and operating costs may limit future profit growth for the automaker.