General Motors (NYSE: GM) stock was surging on Wednesday after the automaker surprised investors with a $10 billion accelerated share repurchase program and raised its dividend by 33% to $0.12 per quarter.

The automaker also reinstated its guidance after pulling it earlier during the United Auto Workers strike. It believes that the strike will cost it $1.1 billion in operating profit, primarily due to lost production. The company's now expects net income of $9.1 billion-$9.7 billion for the year, down from a previous range of $9.3 billion-$10.7 billion. On an adjusted earnings per share (EPS) basis, GM expects $7.20-$7.70 in profits for the year, compared to earlier guidance of $7.15-$8.15.

As part of the accelerated share repurchase program, the company said it would work with its banking partners to immediately repurchase and retire $6.8 billion worth of its stock, and it plans to finish the share repurchase program by the end of next year.

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Source Fool.com