GM strengthens cash-flow outlook and authorizes another $20 billion of buybacks

General Motors ($GM) reported quarterly revenue of $50 billion, net income of $3.3 billion and adjusted operating earnings of $4.1 billion. It raised its full-year automotive adjusted free-cash-flow range to $11.5–12.5 billion from $9.5–11.5 billion. Adjusted earnings-per-share guidance moved to $12.75–13.75 from $12–14, while the adjusted operating-profit range narrowed to $14.5–15.5 billion from $14–16 billion without changing its midpoint.

The board also authorized a new $20 billion share-repurchase program after completion of the previous $6 billion authorization. Stronger projected cash generation provides greater flexibility for capital returns, but an authorization is permission to buy shares, not evidence that purchases have already occurred. The new program carries no expiration date or committed execution timetable. Its eventual effect on cash balances and share count will depend on actual repurchases.

Sources:

• GM — PR Newswire results and authorization