UPDATE: GM shares down premarket as revenue miss weighs against profit beat and chip shortage takes its toll

General Motors shares reversed early gains to trade down 1.6% in premarket trade Wednesday, after the company blew past profit estimates for the third quarter and offered above-consensus guidance for the full year, but suffered a revenue miss. GM said it had net income of $2.420 billion, or $1.62 a share, in the quarter, down from $4.045 billion, or $2.78 a share, in the year-earlier period. Adjusted per-share earnings came to $1.52, well ahead of the 98 cents FactSet consensus. Revenue fell to $26.779 billion from $35.480 billion a year ago, missing the $30.722 billion FactSet consensus. The quarter "was challenging due to continuing semiconductor pressures," CEO Mary Barra said in a letter to shareholders. However, it also included "strong price and mix performance in North America, the benefit of the company's recall cost recovery agreement with LG Electronics and the continued strong financial results at GM Financial. As a result, the company is on track to deliver full-year 2021 EBIT-adjusted earnings approaching the high end of its guidance range," GM said in a statement. The auto maker is now expecting full-year EPS to range from $5.52 to $6.52. It expects adjusted EPS to range from $5.70 to $6.70, compared with a FactSet consensus of $6.41. Shares have gained 38% in the year to date, while the S&P 500 has gained 22%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.