GM profit tops estimates, sees strong full year

General Motors Co on Wednesday posted far stronger-than-expected quarterly profit and said its full-year earnings forecast would come in at the high end of its forecast due to strong demand in North America.

GM shares jumped 7.6 percent in pre-market trading.

The Detroit automaker reported third-quarter net income of $2.53 billion, or $1.75 a share, compared with a loss last year of $2.98 billion, or $2.03 a share. Last year's quarter included a charge related to Europe.

Excluding one-time items, GM earned $1.87 a share in the third quarter, easily beating the $1.25 analysts polled by Refinitiv estimates had expected.

Revenue in the quarter rose 6.4 percent to $35.8 billion, above the $34.85 billion analysts had expected.

GM was able to push through higher pricing, mostly in North America, allowing it to benefit by $1 billion in the quarter, offsetting higher commodity costs. Those pricing gains are sustainable, the company's CFO said.

 “Our third-quarter performance demonstrates our determination to manage risks and deliver strong business results,” GM Chief Executive Mary Barra said in a statement. The Detroit automaker said it still sees a full-year profit in the range of $5.80 to $6.20 a share, but said it now expected to finish at the high end of the range with potential to finish even higher. It cited a favorable tax rate and its strong performance.