GM earnings highlights
General Motors reported the next for the primary quarter of 2024.
- General Motors (GM/NYSE): Earnings per share of $2.62 (versus $2.13 forecast). Revenue of $43 billion (versus estimated $41.15 billion).
GM said Tuesday that it earned $2.97 billion from January to March, with sales rising 7.6% to only over $43 billion in comparison with the identical period last 12 months. That beat analysts polled by FactSet of $41.15 billion. Excluding one-time items, the corporate earned $2.62 per share, comfortably beating Wall Street estimates of $2.13 per share.
First quarter insights for investors
Wedbush’s Dan Ives said in a note to clients that GM delivered a solid performance as the corporate focused on profitability and price management. “This was an important ‘proof’ quarter for GM and shows that the long-awaited turnaround for Barra & Co. now appears to be underway,” he wrote, referring to CEO Mary Barra.
GM’s higher-than-forecast pricing also allowed the corporate to barely increase its full-year net income forecast to between $10.1 billion and $11.5 billion, from $9.8 billion to $11.2 billion. to lift dollars. Guidance for adjusted earnings per share in 2024 rose to a spread of $9 to $10 from $8.50 to $9.50.
Analysts expect earnings of $8.89 per share for the 12 months. Shares of the corporate, which plans to maneuver its Detroit headquarters to a brand new downtown office constructing next 12 months, rose greater than 5% in early morning trading.
GM cuts prices, electric vehicle sales and battery production increase
Chief Financial Officer Paul Jacobson said prices fell barely because GM sold a bigger share of cheaper vehicles, comparable to the Chevrolet Trax small SUV, which starts at $21,495 including shipping. “The portfolio was pretty strong overall,” he said, noting that U.S. pickup truck sales rose 3%
The company still expects prices to fall 2 percent to 2.5 percent for the complete 12 months, but hasn’t seen the decline yet, Jacobson said.
Retail sales of electrical vehicles rose through the quarter and GM was producing more of its own batteries, he said. The company is on course to realize a mid-single-digit profit margin on electric vehicles next 12 months.
CEO Mary Barra said in a letter to shareholders that GM is seeing “good early sales momentum” for vehicles comparable to the Cadillac LYRIQ, an electrical SUV. The company also benefited from significantly reduced battery cell costs and lower raw material prices, she added.
