General Motors has exceeded shareholder expectations for the 4th quarter of 2023 And also holds a good outlook on its economic future for 2024.
The 2024 guidance outlook for General Motors states a net income for stockholders of $9.8 billion to $11.2 billion or $8.50 to $9.50 per share. along with this the company also achieved an adjusted Automotive free cash flow between $8 billion and $10 billion. This news bodes well for prospective buyers interested in a GM model like the GMC Terrain.
2024’s earnings guidance is largely better than its 2023 results and outshone analysts’ expectations when compared with the aforementioned 2023 results.
Below is a bulleted list of earnings per share and revenue for GM stock in Q4 2023, and beside them are estimates provided by LSEG:
● Adjusted earnings per share: $1.24 versus $1.16, estimated
● Revenue: $42.98 billion versus $38.67 billion, estimated
Shareholder net income hovered around $2.1 billion, which equates to about $1.59 per share. Compared to 2023, 2024 saw an extra $100 million in shareholder income and an extra $0.20 per share. With alterations made to accommodate one-time items, General Motors earned $1.24 per share which exceeded Wall Street projections. Overall revenue remains flat, with Q4 2023 showing $42.98 billion as opposed to $43.11 billion for Q4 2022.
North American earnings showed a 45 percent decline over the previous year, reaching $2.01 billion. International business showed a decline as well, dipping 1.1 percent to $269 million. China, which makes up the second-largest market for GM, reports a 34 percent drop in equity income for 2023, dropping to $446 million which includes a 54 percent drop for Q4 2023.
GM’s majority stake in autonomous driving software company Cruise took a loss this past year as well, losing roughly $1 billion in revenue. Cruise is also under several ongoing lawsuits across state and federal levels. Mary Barra, CEO of General Motors, states,
“At Cruise, we are committed to earning back the trust of regulators and the public through our commitments and our actions.”
General Motors’ EV programs have suffered a blow as well, largely due to a slower-than-anticipated adoption of electric vehicles by consumers worldwide. Barra commented on the phenomenon
“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.”
2.9 percent of GM’s overall sales were made of EVs, and a large majority of the EVs sold were the now-discontinued Chevrolet Bolt. GM is also experiencing several issues regarding its Ultium EV vehicle platform.
Despite an uptick in profit and stock prices, GM’s financial future is looking uncertain. Do you think the company will recover, or will the downward spiral continue?
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