General Motors Shares Pop 5.5% After Reinstated Guidance, Big Buyback Plans

By Will Feuer

Shares of General Motors rose after the automaker said it plans to buy back some $10 billion in stock, raise its dividend and reinstated its full-year profit outlook after pulling its guidance earlier this year due to the United Auto Workers strike.

The stock climbed 5.5% to $30.49 in premarket trading. Shares were down more than 14% this year through Tuesday's close.

The company said it will raise its quarterly common stock dividend to 12 cents a share in 2024, up from nine cents a share.

GM also said it is initiating a $10 billion accelerated share repurchase program.

The company is now forecasting full-year profit of $6.52 a share to $7.02 a share, including the impact from the buyback plan. That is down from $6.54 a share to $7.54 a share that was forecast earlier this year, before GM pulled the outlook due to the UAW strikes.

GM is targeting adjusted earnings of $7.20 a share to $7.70 a share, compared with old guidance for $7.15 a share to $8.15 a share.

Write to Will Feuer at [e-mail]

(END) Dow Jones Newswires

November 29, 2023 07:03 ET (12:03 GMT)

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