General Motors Vrooms Past Q4 Street Expectations, Sees US EV Business Take Off From Second Half 2024

Articles From: Benzinga
Website: Benzinga

By:

Benzinga Staff Writer

ZINGER KEY POINTS

  • GM reports slight Q4 sales dip to $42.98B, beating estimates; adjusted EPS of $1.24 surpasses consensus.
  • GM’s market share declines in U.S. and China; forecasts FY24 adjusted EPS of $8.50-$9.50, shares up 8.39% in premarket.

General Motors Company (NYSE: GM) reported a fourth-quarter FY23 sales decline of (0.3)% year-on-year to $42.98 billion, beating the analyst consensus estimate of $38.97 billion.

Adjusted EPS of $1.24 beat the consensus estimate of $1.16.

GM’s market share reached 8.5% for the quarter versus 9.1% a year ago. In the U.S. the share changed to 15.7%, down from 16.7%. Its share in China reached 7.9%, down from 9.1% a year earlier.

The fourth quarter deliveries registered a 0.1 million increase Y/Y to 1.6 million units.

Operating income for the quarter fell to $0.9 billion versus $2.6 billion a year ago.

GM, in its letter to shareholders, said, “Consensus is growing that the U.S. economy, the job market and auto sales will continue to be resilient, and at GM, we expect healthy industry sales of about 16 million units with the mix of EVs continuing to grow.”

Adjusted EBIT for the quarter fell (53.4)% to $1.76 billion, with an adjusted EBIT margin of 4.1%, down by 470 bps. Net income margin was 4.9% versus 4.6% a year ago.

The company held $26.5 billion in cash and equivalents as of December 31, 2023. The adjusted automotive free cash flow was $1.34 billion.

The company acknowledged the slowdown in the EV business. However, it expects the U.S. portfolio to become variable profit positive in the second half of the year based on its current expectations for EV demand and production growth, strong interest in our vehicles, lower commodity prices and other factors.

FY24 Guidance: 

General Motors projects adjusted EPS of $8.50 – $9.50 versus consensus of $7.83. The company projects adjusted automotive free cash flow of $8.0 billion – $10.0 billion. It eyes capital spending of $10.5 billion – $11.5 billion.

Price Action:

GM shares are trading higher by 7.94% at $38.20 in premarket on the last check Tuesday.

Originally Posted January 30, 2024 – General Motors Vrooms Past Q4 Street Expectations, Sees US EV Business Take Off From Second Half 2024

Join the Discussion

Thank you for engaging with IBKR Campus. If you have a general question, it may already be covered in our FAQs. If you have an account-specific question or concern, please reach out to Client Services.

Your email address will not be published. Required fields are marked *

Disclosure: Benzinga

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Benzinga and is being posted with its permission. The views expressed in this material are solely those of the author and/or Benzinga and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.