General Motors Company shares jumped more than 5% intraday, touching their highest level since March 2015, after the company said Tuesday it expects FY17 adjusted earnings per diluted share of $6.00 to $6.50, increasing from its FY16 outlook of $5.50 to $6.00 per share, and above the $5.7 per share consensus of analysts polled by Capital IQ.
Based on this outlook, the board approved an additional $5 billion of buybacks under its existing share repurchase program, which was announced March 9, 2015. The new authorization, which has no expiration date, brings the total under the program to $14 billion.
The company expects to meet its prior commitment to repurchase $9 billion of common stock by the end of 2017, according to a statement.
In 2017, the company also expects to maintain or improve EBIT-adjusted and EBIT-adjusted margin on higher revenues, compared to 2016, and generate about $6 billion of automotive-adjusted free cash flow.