General Motors saw the chip shortage improve in Q3

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General Motors Company (NYSE: GM) is trading up this morning after reporting better-than-expected profit for its fiscal third quarter. Its revenue, though, came in slightly shy of estimates.

Highlights from CEOs’ interview with CNBC

The quarterly update is particularly interesting since it reiterates the narrative that the U.S. consumer is keeping strong despite talks of a recession. Speaking with CNBC’s Phil LeBeau, CEO Mary Barra said:

We’re still seeing very strong demand for our products, especially our full-sized trucks and allowing for strong pricing. Inventory is rising a little bit but well below pre-pandemic levels. So, we’re still seeing a strong consumer.

General Motors had concluded its prior quarter with roughly 95,000 vehicles that were built but not delivered due to component shortages. That supply landscape also improved in Q3, the chief executive confirmed.

We were able to clear 75% of what we had in inventory because of a chip shortage. I wouldn’t say we’re completely out of it, but we’re continuing to work through the different challenges quarter by quarter and we’re seeing it improve.

Key takeaways from General Motors’ Q3 report

Net income printed at $3.31 billion versus the year-ago $2.42 billionPer-share earnings climbed meaningfully from $1.62 to $2.25Revenue jumped 56% on a year-over-year basis to $41.89 billionConsensus was $1.88 a share of EPS on $42.09 billion revenue

General Motors shares are also up since the legacy automaker reiterated its future guidance. It’s calling for $6.50 to $7.50 of per-share earnings (adjusted) this year, as per the press release.

EV update expected on November 17th

General Motors wants to produce 70,000 units of its Chevrolet Bolt EV and Bolt EUV next year. That compares to 44,000 in 2022. It will update on “the rapid scaling” of its EV business on November 17th (investor day).

Last month, GM signed a sizable EV deal with Hertz (read more). General Motors shares are still down more than 40% for the year.

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