General Motors tops forecasts despite slower EV market

General Motors beat market forecasts with its latest figures on Tuesday, as it reported revenue of $43bn in its fourth quarter, with net income attributable to stockholders of $2.1bn and adjusted EBIT of $1.8bn.

For the full 2023 year, GM recorded revenue of $171.8bn, net income attributable to stockholders of $10.1bn, and adjusted EBIT of $12.4bn.

GM's 2024 financial outlook anticipated capital spending between $10.5bn and $11.5bn, including investments in the company's battery cell manufacturing joint ventures.

Chair and chief executive officer Mary Barra expressed confidence in the company's financial performance, highlighting a strong free cash flow allowing capital return to shareholders.

She also mentioned GM's expectations for healthy industry sales and EV growth in 2024.

“We learned a lot in 2023, and those learnings are helping us build on our strengths, address our challenges, and create an even stronger GM with a growing and profitable EV business,” Barra told shareholders.

“Everyone on the team is focused on strong execution to sustain our momentum and create shareholder value, and we are deeply committed and accountable to do exactly that.”

According to CNBC, GM surpassed Wall Street expectations in the fourth quarter, with adjusted earnings per share of $1.24, compared to an estimated $1.16, and the revenue of $43bn surpassing the estimated $38.67bn.

GM's performance in the North American market saw adjusted earnings decline by 45% in the fourth quarter to $2.01bn, while international operations decreased 1.1% to $269m.

China, GM's second-largest market, faced a 34% decline in equity income for the year, reaching $446m, with a 54% drop in the fourth quarter.

GM said it expected its China operations to remain relatively flat in 2024, with an anticipated first-quarter loss.

The carmaker also disclosed plans to reduce spending on its majority-owned autonomous vehicle subsidiary Cruise by $1bn in 2024.

Cruise remained under investigation by state and federal authorities following a pedestrian accident in San Francisco.

CEO Mary Barra emphasised the company's commitment to addressing issues at Cruise and earning back regulators' trust.

Regarding electric vehicles (EVs), GM acknowledged slower EV adoption in the US than initially anticipated, but said it remained committed to expanding its lineup and sales in 2024.

The company said it expected healthy industry sales of about 16 million units, with the EV market share continuing to grow.

At 0722 EST (1222 GMT), shares in General Motors Company were up 7.91% in premarket trading in New York, at $38.19.

Reporting by Josh White for Sharecast.com.