GM Q4 Results Top Estimates, Sees FY24 Earnings Above Market; Stock Up

(RTTNews) - General Motors Co. on Tuesday reported higher profit and nearly flat revenues in its fourth quarter, both above market estimates. The automotive giant also issued fiscal 2024 earnings per share view, higher than last year, and also above the Street estimates.

GM shares were gaining more than 9 percent to trade at $38.67 on the New York Stock Exchange.

GM Chair and CEO Mary Barra said, "As we begin 2024, I believe GM is well positioned for a year of strong financial performance that will build on everything we accomplished — and learned — in 2023.... In our EV business, we expect our U.S. portfolio will become variable profit positive in the second half of the year based on our current expectations for EV demand and production growth, strong interest in our vehicles, lower commodity prices and other factors."

For fiscal 2024, the company projects net income attributable to stockholders of $9.8 billion to $11.2 billion, compared to last year's $10.1 billion.

Earnings per share, on a reported and adjusted basis, are expected to be in the range of $8.50 to $9.50 for the year. In 2023, earnings were $7.32 per share on a reported basis and $7.68 on an adjusted basis.

Analysts on average expect the company to report earnings of $7.83 per share for the year, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The 2024 guidance includes an estimated $1.45 per share impact from the company's accelerated share repurchase program, initiated in November 2023.

Further, GM's 2024 financial guidance includes anticipated capital spending of $10.5 billion - $11.5 billion.

In fiscal 2023, total company revenue grew 10 percent year-over-year to $171.84 billion.

Barra noted that in the U.S. in 2023, GM sold more vehicles than anyone else, and all its brands grew their sales year over year. The company also gained market share with strong margins thanks to stable pricing and incentives that were more than 20 percent below the industry average.

In its fourth quarter, the company's net income attributable to stockholders came in at $2.10 billion or $1.59 per share, 5.2 percent higher than $2.00 billion or $1.39 per share in last year's fourth quarter.

Adjusted earnings were $1.24 per share for the period, compared to $2.12 per share a year ago. Analysts had expected the company to earn $1.16 per share.

Adjusted EBIT, meanwhile, fell 53.8 percent to $1.76 billion from last year's $3.80 billion. Adjusted EBIT margin was 4.1 percent, down 4.7 percentage points from the prior year.

The company's revenue for the quarter fell 0.3 percent to $42.98 billion from $43.11 billion last year. The Street was looking for revenues of $38.97 billion.

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