On Wednesday, General Motors said it sold fewer overall vehicles during its third quarter, but its prices were higher, helping the automaker produce higher than had been expected earnings that sent shares soaring.
The company posted revenue of $35.79 billion while analysts were expecting $34.84 billion and earnings per share reached $1.87 while analysts were looking for $1.25.
The Detroit-based automaker saw its shares bounce by 6.3% during early trading, while the stock was up 10% during premarket trading.
GM swung back to a profit during the three-month period from a loss during the same period last year. Net income was $2.5 billion compared to a $2.98 billion loss last year.
CFO at GM Dhivya Suryadevara said the company’s disciplined approach to the market in the U.S. combined with a strong period in China and growth at GM Financial drove the strong quarter for GM.
The CFO said the company would continue taking actions to mitigate the headwinds that include commodity costs and foreign currency volatility. She added that GM is expecting strong performance during the fourth quarter and solid sales of its high profitable trucks.
The company added that fewer vehicles were sold but it was able to increase prices in the U.S. by $800 per vehicle on average and $4,000 above the industry average. It added that it said its sales of Cadillac in China set new records, up more than 4% over the prior year and 20% since the start of 2018.
Third quarter sales volume for GM fell 14.7% from the same period last year, while sales in every region and with every brands fell, with Cadillac having the smallest declines amongst marquee brands.
Sales for several truck models for GMC and Chevrolet including High Country and Silverado and Denali, GEM Sierra SLT and AT4 crew cab exceeded Wall Street expectations.
GM is expecting to ship 120,000 of its new trucks during the second six months of 2018.
All automakers have reported increased material costs and other higher expenses due to the trade war, especially between Washington and Beijing.
Shares of GM have dropped close to 19% since the start of 2018.