General Motors (GM - Free Report) reported fourth-quarter 2021 adjusted earnings of $1.35 per share, topping the Zacks Consensus Estimate of $1.15. Better-than-expected profits from its North America and Financial segments drove this outperformance. The bottom line, however, compares unfavorably with year-ago quarter’s earnings of $1.93 per share.
Revenues of $33,584 million also surpassed the Zacks Consensus Estimate of $29,221 million. The top line compares unfavorably with the year-ago figure of $37,518 million. The company recorded adjusted earnings before interest and taxes (EBIT) of $2,839 million, lower than $3,712 million in the prior-year quarter. This downside resulted from the semiconductor headwinds faced by GM and rising commodity and logistics costs, partially offset by strong pricing on full-size pickups and full-size SUVs
The automaker’s market share in the GM market was 8.9% in the reported quarter, down from the year-ago quarter’s 10.9%.
Segmental Performance
GM North America (GMNA) generated fourth-quarter net revenues of $26,865 million, down from the $30,170 million recorded in the corresponding period of 2020. Nonetheless, revenues from the unit outpaced the Zacks Consensus Estimate of $24,931 million. The region’s wholesale vehicle sales of 579,000 units declined from the 802,000 units reported in the year-ago quarter but topped the consensus mark of 574,000 units. The segment’s operating profit came in at $2,165 million, lower than the $2,612 million witnessed in the year-earlier period. However, the segmental profit topped the consensus mark of $1,836 million.
GM International’s (GMI) net revenues in the reported quarter came in at $3,451 million, down from the year-ago quarter’s $3,894 million. The reported metric also missed the consensus mark of $4,208 million. The segment’s wholesale vehicle sales of 163,000 units declined from 216,000 units reported in the year-ago quarter and missed the consensus mark of 180,000 units. The unit reported an operating profit of $275 million, lower than the year-ago profit of $283 million. It missed the consensus mark of $363 million.
GM Financial generated net revenues of $3,232 million in the December quarter, down from $3,426 million recorded in the year-ago period and missed the consensus mark of $3,398 million. Also, the segment recorded an operating profit of $1,180 million, up from $1,039 million and beat the consensus mark of $905 million.
GM Cruise witnessed net revenues of $25 million in the fourth quarter, marginally up from $24 million reported in the year-earlier period and matched the consensus mark. The segment posted an operating loss of $349 million, wider than the $260 million loss reported in the prior-year quarter. The loss was also wider than the consensus mark of a loss of $313 million.
Financial Position
General Motors had cash and cash equivalents of $20,067 million as of Dec 31, 2021, compared with $19,992 million at the end of 2020. The long-term automotive debt at the end of the quarter was $16.4 billion compared with $16.2 billion as of Dec 31, 2020.
General Motors’ automotive cash provided by operating activities amounted to $9,384 million at the end of the reported quarter, a significant rise from $5,243 million in the prior-year period. The company recorded adjusted automotive free cash flow of $6,403 million in fourth-quarter 2021, increasing from $3,433 million.
2022 Guidance
For 2022, the company expects full-year net income to be in a range of $9.4-$10.8 billion and adjusted EBIT forecast to be in a range of $13.0 billion to $15.0 billion, taking into consideration continued steady demand for new vehicles and no significant new economic or supply chain challenges.
Zacks Rank & Other Key Picks
Currently, General Motors sports a Zacks Rank #1 (Strong Buy).
Other top players in the auto space include Good Year (GT - Free Report) and Tesla (TSLA - Free Report) , each sporting a Zacks Rank #1, and Genuine Parts (GPC - Free Report) , carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Good Year has an expected earnings growth rate of 51.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1.1% upward over the past 60 days.
Good Year’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GT pulled off a trailing four-quarter earnings surprise of 228.5%, on average. The stock has also rallied 92% over a year.
Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 0.7% over a year.
Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 16%, on average. Its shares have gained 37.6% over a year.
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General Motors (GM - Free Report) reported fourth-quarter 2021 adjusted earnings of $1.35 per share, topping the Zacks Consensus Estimate of $1.15. Better-than-expected profits from its North America and Financial segments drove this outperformance. The bottom line, however, compares unfavorably with year-ago quarter’s earnings of $1.93 per share.
Revenues of $33,584 million also surpassed the Zacks Consensus Estimate of $29,221 million. The top line compares unfavorably with the year-ago figure of $37,518 million. The company recorded adjusted earnings before interest and taxes (EBIT) of $2,839 million, lower than $3,712 million in the prior-year quarter. This downside resulted from the semiconductor headwinds faced by GM and rising commodity and logistics costs, partially offset by strong pricing on full-size pickups and full-size SUVs
The automaker’s market share in the GM market was 8.9% in the reported quarter, down from the year-ago quarter’s 10.9%.
Segmental Performance
GM North America (GMNA) generated fourth-quarter net revenues of $26,865 million, down from the $30,170 million recorded in the corresponding period of 2020. Nonetheless, revenues from the unit outpaced the Zacks Consensus Estimate of $24,931 million. The region’s wholesale vehicle sales of 579,000 units declined from the 802,000 units reported in the year-ago quarter but topped the consensus mark of 574,000 units. The segment’s operating profit came in at $2,165 million, lower than the $2,612 million witnessed in the year-earlier period. However, the segmental profit topped the consensus mark of $1,836 million.
GM International’s (GMI) net revenues in the reported quarter came in at $3,451 million, down from the year-ago quarter’s $3,894 million. The reported metric also missed the consensus mark of $4,208 million. The segment’s wholesale vehicle sales of 163,000 units declined from 216,000 units reported in the year-ago quarter and missed the consensus mark of 180,000 units. The unit reported an operating profit of $275 million, lower than the year-ago profit of $283 million. It missed the consensus mark of $363 million.
GM Financial generated net revenues of $3,232 million in the December quarter, down from $3,426 million recorded in the year-ago period and missed the consensus mark of $3,398 million. Also, the segment recorded an operating profit of $1,180 million, up from $1,039 million and beat the consensus mark of $905 million.
GM Cruise witnessed net revenues of $25 million in the fourth quarter, marginally up from $24 million reported in the year-earlier period and matched the consensus mark. The segment posted an operating loss of $349 million, wider than the $260 million loss reported in the prior-year quarter. The loss was also wider than the consensus mark of a loss of $313 million.
Financial Position
General Motors had cash and cash equivalents of $20,067 million as of Dec 31, 2021, compared with $19,992 million at the end of 2020. The long-term automotive debt at the end of the quarter was $16.4 billion compared with $16.2 billion as of Dec 31, 2020.
General Motors’ automotive cash provided by operating activities amounted to $9,384 million at the end of the reported quarter, a significant rise from $5,243 million in the prior-year period. The company recorded adjusted automotive free cash flow of $6,403 million in fourth-quarter 2021, increasing from $3,433 million.
2022 Guidance
For 2022, the company expects full-year net income to be in a range of $9.4-$10.8 billion and adjusted EBIT forecast to be in a range of $13.0 billion to $15.0 billion, taking into consideration continued steady demand for new vehicles and no significant new economic or supply chain challenges.
Zacks Rank & Other Key Picks
Currently, General Motors sports a Zacks Rank #1 (Strong Buy).
Other top players in the auto space include Good Year (GT - Free Report) and Tesla (TSLA - Free Report) , each sporting a Zacks Rank #1, and Genuine Parts (GPC - Free Report) , carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Good Year has an expected earnings growth rate of 51.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1.1% upward over the past 60 days.
Good Year’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GT pulled off a trailing four-quarter earnings surprise of 228.5%, on average. The stock has also rallied 92% over a year.
Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 0.7% over a year.
Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 16%, on average. Its shares have gained 37.6% over a year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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