General Motors (GM) Fourth-Quarter Earnings Beat Estimates, Fall Year-Over-Year

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General Motors GM reported fourth-quarter 2023 adjusted earnings of $1.24 per share, which surpassed the Zacks Consensus Estimate of $1.12. The bottom line, however, decreased from the year-ago quarter’s level of $2.12. Revenues of $42.98 billion beat the Zacks Consensus Estimate of $40.78 billion but decreased from $43.1 billion recorded in the year-ago period.The U.S. auto giant recorded adjusted earnings before interest and taxes (EBIT) of $1.75 billion, lower than $3.79 billion in the prior-year quarter. The automaker’s share in the GM market was 8.5% in the reported quarter compared with 9.1% in the year-ago quarter.

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GM North America (“GMNA”) generated net cash revenue of $35. 23 billion, compared to $35. 47 billion for the corresponding generation of 2022. However, this figure exceeded our projection of our style of $33. 2 billion due to higher than expected deliveries. Wholesale vehicle sales at the GMNA unit totaled 782,000 units, up from 787,000 units reported in the prior-year quarter. This figure, however, exceeds our estimate of 748,000 devices. The segment’s operating profit amounted to $2. 01 billion, up from $3. 65 billion a year earlier. This figure is also behind our estimate of $2. 66 billion due to changes in electric vehicle stock provisions and the effect of the strike. GM International’s (“GMI”) net cash inflows during the reported quarter were $3. 94 billion, down from $4. 32 billion in the prior-year quarter. This figure also missed our estimate of $4. 32 billion due to lower-than-expected deliveries. Segment wholesale vehicle sales of 161,000 units decreased from 180,000 units in the prior-year quarter and also fell short of our projection of 176,000 units. GMI reported an operating profit of $269 million, below last year’s quarter profit of $272 million and also below our estimate of $309. 7 million. GM Financial generated net cash of $3. 74 billion during the quarter, up from $3. 28 billion during the year. 20 years ago and before our $3. 2 billion forecast. The segment reported EBIT-adjusted operating profit of $707 million, up from $775 million a year earlier. The move also did not breach our forecast of $726. 8 million. GM Cruise reported a net cash inflow of $25 million in the fourth quarter, flat year over year. The metric was also consistent with our projection. The segment reported an operating loss of $792 million, larger than the $524 million loss reported in the prior-year quarter. The reported loss was also higher than our estimate of a $610. 4 million loss due to decreased volume and mix.

General Motors had $18. 85 billion in cash and cash equivalents as of Dec. 31, 2023, compared to $19. 15 billion as of Dec. 31, 2022. Long-term automotive debt at the end of the quarter was $15. 98 billion, compared to $15. 88 billion as of Dec. 31, 2022. From December 31, 2022. Al January 31, 2022, the automotive segment’s net liquidity from non-consistent activities amounted to $4. 66 billion in the quarter analyzed. The company reported automotive adjusted loose money of $1. 34 billion in the fourth quarter of 2023, a decrease from $4. 46 billion a year ago. GM declared its final dividend of 12 cents consistent with the percentage in the first quarter, a 35% increase from the prepayment. The final dividend will be paid on March 14, 2024 to consistent percentage holders on or after March 1, 2024. .

For full-year 2024, GM expects adjusted EBIT in the range of $12-$14 billion. Adjusted diluted EPS is anticipated in the range of $8.50-$9.50. Capex is predicted to be in the $10-$11 billion range. Adjusted automotive free cash flow is expected in the band of $8-$10 billion.

GM lately has a Zacks Rank #3 (Hold). Some of the top-ranked players in the automobile sector are Honda Motor Co. , Ltd. HMC, BYD Company Limited BYDDY, and Mercedes-Benz Group AG MBGAF. While HMC and BYDDY are lately sporting a Zacks Rank #1 (Strong Buy), MBGAF is lately sporting a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for HMC’s 2024 sales and earnings implies year-over-year expansion of 14. 8% and 37. 3%, respectively. EPS estimates for 2024 and 2025 have increased 7 cents and 3 cents, respectively, over the last seven days. The Zacks Consensus Estimate for BYDDY’s sales and earnings in 2023 suggests year-over-year expansion of 36. 5% and 70. 6%, respectively. The 2024 EPS estimate has risen 31 cents in the last seven days. The Zacks Consensus Estimate for MBGAF’s sales in 2023 suggests year-over-year expansion of 5. 8%. EPS estimates for 2023 and 2024 have increased by one cent and 30 cents, respectively, over the last 60 days.

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