General Motors (NYSE:GM) showcased robust first-quarter results, surpassing analyst forecasts and boosting its full-year guidance. The automaker remains optimistic about achieving “positive variable profit” in its electric vehicle segment by the latter half of 2024.
GM reported first-quarter revenue of $43.0 billion, surpassing analyst estimates of $42.09 billion, marking a 7% increase compared to the same period last year. Adjusted earnings per share stood at $2.62, outperforming expectations of $2.12, with adjusted EBIT reaching $3.9 billion, exceeding estimates of $3.12 billion.
The positive financial performance propelled GM shares up by 5% in early trading post-results. The company raised its 2024 guidance, anticipating full-year adjusted EBIT between $12.5 billion and $14.5 billion, up from the previous outlook of $12 billion to $14 billion. Adjusted earnings are now projected to range between $9.00 and $10.00 per share in 2024.
GM also revised its automotive operating cash flow outlook to $18.3 billion to $21.3 billion and adjusted automotive free cash flow to $8.5 billion to $10.5 billion.
CEO Mary Barra emphasized the company’s focus on capital efficiency, profitability enhancement, and shareholder value creation. CFO Paul Jacobson highlighted the resilience of GM’s customers amid higher interest rates.
In the electric vehicle segment, GM anticipates achieving “positive variable profit” in the latter half of 2024, driven by the expected sale of 200,000 to 300,000 EVs by year-end. The company aims for a mid-single-digit EBIT margin by 2025, factoring in clean energy tax credits.
Notable gains were reported in Q1 sales, with the Cadillac LYRIQ, Hummer EV, and Silverado EV showing strong performance. Despite challenges, GM remains committed to EV sales growth, prioritizing customer responsiveness.
GM’s reactivation of operations at Cruise in Phoenix signifies progress in its autonomous driving endeavors after last year’s shutdown following safety incidents.
Overall, GM’s solid financial performance underscores its strategic focus on growth and profitability amid evolving market dynamics.
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