Yahoo Finanza General Motors Co (GM) Q1 Earnings: Surpasses Revenue Forecasts and Raises Full-Year Guidance
Revenue: Reported $43.0 billion for Q1 2024, a 7.6% increase year-over-year, surpassing estimates of $41.88 billion.
Net Income: Achieved $3.0 billion, up 24.4% from the previous year, exceeding estimates of $2.45 billion.
Earnings Per Share (EPS): Diluted EPS reached $2.56, a 51.5% increase year-over-year, exceeding the estimated $2.14.
Automotive Operating Cash Flow: Grew significantly to $3.6 billion, marking a 61.2% increase from the previous year.
Adjusted Automotive Free Cash Flow: Turned positive to $1.09 billion, compared to a negative $132 million in the prior year.
Full-Year Guidance: Raised net income forecast to $10.1 billion - $11.5 billion from the previous $9.8 billion - $11.2 billion.
Capital Spending: Anticipates $10.5 billion - $11.5 billion, including investments in battery cell manufacturing joint ventures.
On April 23, 2024, General Motors Co (NYSE:GM) unveiled its first-quarter financial results for the year, demonstrating a robust performance with significant growth in revenue and net income. The company reported a first-quarter revenue of $43.0 billion, a 7.6% increase from the previous year, surpassing the estimated $41.878 billion. Net income attributable to stockholders rose impressively by 24.4% to $3.0 billion, also exceeding the forecasted $2.448 billion. These figures were disclosed in GM's recent 8-K filing.
General Motors Co, which emerged from the bankruptcy of the old GM in July 2009, has regained its position as a leader in the U.S. automotive market. The company operates under four segments: GM North America, GM International, Cruise, and GM Financial, with a significant stake in the autonomous vehicle arm, Cruise. Despite a setback in its autonomous vehicle operations due to an accident in late 2023, GM plans to restart these services in 2024.
Financial Highlights and Strategic Moves
GM's EBIT-adjusted was reported at $3.9 billion, with a slight increase from the previous year. The automotive giant also revised its full-year guidance upwards, now expecting net income attributable to stockholders to be between $10.1 billion and $11.5 billion, up from the previous forecast of $9.8 billion to $11.2 billion. This adjustment reflects GM's optimistic outlook for the remainder of the year.
The company's EPS-diluted-adjusted for the quarter stood at $2.62, showing an 18.6% increase year-over-year and aligning closely with analyst expectations of $2.14. This performance underscores GM's effective management and operational efficiency, particularly in a challenging global market environment.
Operational and Segment Performance
GM North America (GMNA) reported an EBIT-adjusted of $3.84 billion, up 7.4% from the previous year, although there was a slight contraction in EBIT-adjusted margin. Conversely, GM International (GMI) faced challenges, showing an adjusted EBIT loss of $10 million, a significant downturn from a $347 million profit the previous year. Additionally, equity income from China was notably negative, reflecting broader market challenges in the region.
GM Financial remained stable, albeit with a slight decrease in earnings before taxes (EBT-adjusted), which amounted to $737 million compared to $771 million in the prior year. This segment continues to play a crucial role in GM's overall financial strategy, providing robust financial services to support vehicle sales.
Investor and Analyst Insights
During the earnings call, GM Chair and CEO Mary Barra, along with CFO Paul Jacobson, expressed confidence in the company's strategic direction and financial health. They highlighted the advancements in GM's all-electric future, anchored by the Ultium battery platform, which is set to power a range of vehicles from mass-market to high-performance models.
General Motors' commitment to an all-electric future and its strategic investments, particularly in battery cell manufacturing joint ventures, are pivotal components of its growth strategy. These initiatives are expected to bolster GM's competitive edge in the evolving automotive industry.
Conclusion
General Motors Co's first-quarter results for 2024 reflect a strong financial and operational performance, with significant increases in revenue and net income, surpassing analyst expectations. The company's upward revision of its full-year guidance and strategic focus on electric vehicles and advanced technologies underscore its commitment to maintaining a leading position in the global automotive market. Investors and stakeholders may look forward to continued growth and innovation from GM as it navigates the dynamic challenges and opportunities ahead.
Explore the complete 8-K earnings release (here) from General Motors Co for further details.
This article first appeared on GuruFocus.
