General Motors raises 2024 guidance after big first-quarter earnings beat

DETROIT
—


General
Motors
on
Tuesday
raised
its
2024
guidance
after
beating
Wall
Street’s
top-
and
bottom-line
expectations
for
the
first
quarter.

The
automaker
said
it
was
boosting
its
forecast
after
strong
North
American
operations
offset
losses
elsewhere
during
the
first
quarter.
The
company
now
expects
adjusted
earnings
of
$12.5
billion
to
$14.5
billion,
or
$9
to
$10
a
share,
up
from
a
previous
range
of
$12
billion
to
$14
billion,
or
$8.50
and
$9.50
a
share.

GM
also
raised
expectations
for
adjusted
automotive
free
cash
flow
to
a
range
of
$8.5
billion
to
$10.5
billion,
up
from
an
earlier
forecast
of
$8
billion
to
$10
billion.

GM
shares
jumped
more
than
4%
immediately
following
the
report.

Here’s
how
the
company
performed
in
the

first
quarter,
compared
with
average
estimates
compiled
by
LSEG:

• 
  Earnings
  per
  share:
  $2.62
  adjusted
  vs.
  $2.15
  expected
• 
  Revenue:
  $43.01
  billion
  vs.
  $41.92
  billion
  expected

GM
said
revenue
during
the
first
three
months
of
this
year
was
up
7.6%
from
roughly
$40
billion
a
year
earlier.
Its
net
income
during
the
first
quarter
was
up
about
26%
to
$2.95
billion.

The
automaker’s
net
income
attributable
to
stockholders,
which
excludes
some
dividend
payouts,
was
up
24.4%
to
$2.98
billion,
or
$2.56
per
share,
from
the

first
quarter
of
2023
when
the
company
reported
net
income
attributable
to
stockholders
of
about
$2.4
billion,
or
$1.69
per
share. 

The
automaker’s
adjusted
earnings
before
interest
and
taxes
were
$3.87
billion,
or
$2.62
per
share,
during
the
first
quarter. 

GM’s
North
American
operations,
driven
by
truck
sales,
were
largely
responsible
for
the
company’s
first-quarter
beat
and
guidance
raise,
the
automaker
said.  

The
division
increased
adjusted
earnings
during
the
quarter
to
$3.84
billion,
up
7.4%
from
a
year
earlier,
and
helped
to
offset
losses
of
$106
million
in
China
and
$10
million
in
other
international
markets
during
the
first
three
months
of
the
year.

Steady
vehicle
pricing
and

increased
retail
sales
in
North
America
also
helped
GM
achieve
a
10.6%
adjusted
profit
margin
in
the
region
for
the
period
–
above
its
previously
announced
8%
to
10%
range
for
the
year.

GM
CFO
Paul
Jacobson
said
prices
for
the
automaker’s
vehicles
were
roughly
flat
to
slightly
lower
due
to
vehicle
mix
during
the
quarter,
but
not
down
as
much
as
the
2%
to
2.5%
decline
the
company
anticipated
for
the
year.

“Our
consumer
has
been
remarkably
resilient
in
this
period
of
higher
interest
rates,”
Jacobson
told
reporters
during
a
briefing. “We
think
in
this
environment
that
we
can
continue
to
perform.”

He
also
noted
the
company’s
loss
in
China
was “slightly
better”
than
the
company
had
previously
forecast.

GM
specifically
noted
that
sales
of
its
highly
profitable
pickups
remain
strong,
while
production
of
its
all-electric
vehicles
continues
to
ramp
up
following
bottlenecks
in
production,
particularly
with
battery
modules.

“As
we
continue
to
strengthen
our
[internal
combustion
engine]
portfolio,
scale
EVs
and
reinvest
in
the
business,
we
are
very
focused
on
capital
efficiency,
enhancing
profitability
and
free
cash
flow,
and
we
will
continue
to
take
steps
to
create
shareholder
value,”
GM
CEO
Mary
Barra
said
in
a
letter
to
shareholders.

Jacobson
said
the
company
still
plans
to
produce
between
200,000
and
300,000
EVs
during
2024.

While
North
America
continues
to
be
strong
for
the
automaker,
vehicle
inventory
levels
in
the
U.S.
are
rising.
The
company
ended
the
first
quarter
with
a
63
days’
supply
of
vehicles
–
above
the
automaker’s

previous
guidance
of
50
days
to
60
days.

Jacobson
said
the
company
is
watching
those
levels
but
is
not
too
concerned
about
the
number
of
vehicles
ahead
of
a
spring
and
summer
selling
season
that
includes
some
factory
shutdowns
for
retooling.

“We
actually
feel
pretty
good
about
where
we
are,”
he
said. “It’s
something
that
obviously
we’re
watching.
But
right
now,
no
signs
of
any
softness
that
we
can
see.”

GM’s
financing
arm
reported
adjusted
earnings
of
$737
million
during
the
first
quarter,
down
4.4%
from
a
year
earlier.

This
is
developing
news.
Please
check
back
for
additional
updates.

Correction:
This
story
has
to
been
updated
to
correct
that
General
Motors
plans
to
produce
between
200,000
and
300,000
EVs
during
2024.