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General Motors (GM) Q4 Earnings Beat on GMNA Unit Strength
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General Motors (GM - Free Report) reported fourth-quarter 2022 adjusted earnings of $2.12 per share, surpassing the Zacks Consensus Estimate of $1.68. Higher-than-expected revenues and profit from the North America segment led to the outperformance. The bottom line also surged from the year-ago quarter’s earnings of $1.35 per share.
Revenues of $43,108 million beat the Zacks Consensus Estimate of $41,313 million. The top line soared 28.3% from the year-ago figure of $33,584 million. The company recorded adjusted earnings before interest and taxes (EBIT) of $3,799 million, higher than $2,839 million in the prior-year quarter.
The automaker’s share in the GM market was 9.2% in the reported quarter, up from the year-ago quarter’s 8.9%.
General Motors Company Price, Consensus and EPS Surprise
GM North America (GMNA) generated fourth-quarter net revenues of $35,471 million, up from $26,865 million recorded in the corresponding period of 2021. Also, revenues from the unit outpaced the Zacks Consensus Estimate of $34,277 million. The region’s wholesale vehicle sales of 787,000 units increased from 579,000 units reported in the year-ago quarter. The segment’s operating profit came in at $3,654 million, increasing from $2,165 million witnessed in the year-earlier period. The segmental profit also beat the consensus mark of $3,367 million.
GM International’s (GMI) net revenues in the reported quarter came in at $4,319 million, up from the year-ago quarter’s $3,451 million. The metric, however, fell short of the consensus mark of $4,479 million. The segment’s wholesale vehicle sales of 180,000 units increased from 163,000 units in the year-ago quarter. The unit reported an operating profit of $272 million, declining from the year-ago profit of $275 million. The metric also lagged the consensus mark of $288 million.
GM Financial generated net revenues of $3,277 million in the quarter, up from $3,232 million recorded in the year-ago period and came ahead of the consensus mark of $3,258 million. Also, the segment recorded an EBIT-adjusted operating profit of $775 million, down from $1,180 million and in line with the consensus mark.
GM Cruise recorded net revenues of $25 million in the fourth quarter, unchanged from the prior-year quarter’s level but missed the consensus mark of $49.84 million. The segment posted an operating loss of $524 million, wider than a loss of $349 million reported in the prior-year quarter. The reported loss also came in wider than the consensus mark of a loss of $445 million.
Financial Position
General Motors had cash and cash equivalents of $19,153 million as of Dec 31, 2022, compared with $20,067 million as of Dec 31, 2021. The long-term automotive debt at the end of the quarter was $15,885 million compared with $16,355 million as of Dec 31, 2021.
General Motors’ automotive cash provided by operating activities amounted to $7,488 million during the quarter under review, down 20.2% year over year. The company recorded an adjusted automotive free cash flow of $4,460 million in fourth-quarter 2022, down 30.3% year over year.
2023 Guidance
For 2023, General Motors’ full-year net income is estimated in the band of $8.7-$10.1 billion. The adjusted EBIT forecast is in the range of $10.5 billion to $12.5 billion. Adjusted EPS is expected in the band of $6-$7. Adjusted automotive free cash flow is envisioned between $5 billion and $7 billion.
Zacks Rank and Key Picks
General Motors currently carries a Zacks Rank #5 (Strong Sell).
A few better-ranked players in the auto space include Mercedes-Benz Group AG (MBGAF - Free Report) , Byd Co (BYDDY - Free Report) and BMW AG (BAMXF - Free Report) . All companies currently sport a Zacks Rank #1 (Strong Buy).
Mercedes Benz develops, manufactures, and sells passenger cars comprising premium and luxury vehicles of the Mercedes-Benz brand. The Zacks Consensus Estimate for MBGAF’s 2022 earnings implies year-over-year growth of 215%.
Byd is principally engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries and mobile phone components. The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings implies year-over-year growth of 42% and 32%, respectively.
BMWis a multi-brand automobile manufacturer that focuses on the premium segments of the worldwide automobile and motorcycle markets. The Zacks Consensus Estimate for BAMXF’s 2022 sales and earnings implies year-over-year growth of 9.04% and 30.30%, respectively.
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General Motors (GM) Q4 Earnings Beat on GMNA Unit Strength
General Motors (GM - Free Report) reported fourth-quarter 2022 adjusted earnings of $2.12 per share, surpassing the Zacks Consensus Estimate of $1.68. Higher-than-expected revenues and profit from the North America segment led to the outperformance. The bottom line also surged from the year-ago quarter’s earnings of $1.35 per share.
Revenues of $43,108 million beat the Zacks Consensus Estimate of $41,313 million. The top line soared 28.3% from the year-ago figure of $33,584 million. The company recorded adjusted earnings before interest and taxes (EBIT) of $3,799 million, higher than $2,839 million in the prior-year quarter.
The automaker’s share in the GM market was 9.2% in the reported quarter, up from the year-ago quarter’s 8.9%.
General Motors Company Price, Consensus and EPS Surprise
General Motors Company price-consensus-eps-surprise-chart | General Motors Company Quote
Segmental Performance
GM North America (GMNA) generated fourth-quarter net revenues of $35,471 million, up from $26,865 million recorded in the corresponding period of 2021. Also, revenues from the unit outpaced the Zacks Consensus Estimate of $34,277 million. The region’s wholesale vehicle sales of 787,000 units increased from 579,000 units reported in the year-ago quarter. The segment’s operating profit came in at $3,654 million, increasing from $2,165 million witnessed in the year-earlier period. The segmental profit also beat the consensus mark of $3,367 million.
GM International’s (GMI) net revenues in the reported quarter came in at $4,319 million, up from the year-ago quarter’s $3,451 million. The metric, however, fell short of the consensus mark of $4,479 million. The segment’s wholesale vehicle sales of 180,000 units increased from 163,000 units in the year-ago quarter. The unit reported an operating profit of $272 million, declining from the year-ago profit of $275 million. The metric also lagged the consensus mark of $288 million.
GM Financial generated net revenues of $3,277 million in the quarter, up from $3,232 million recorded in the year-ago period and came ahead of the consensus mark of $3,258 million. Also, the segment recorded an EBIT-adjusted operating profit of $775 million, down from $1,180 million and in line with the consensus mark.
GM Cruise recorded net revenues of $25 million in the fourth quarter, unchanged from the prior-year quarter’s level but missed the consensus mark of $49.84 million. The segment posted an operating loss of $524 million, wider than a loss of $349 million reported in the prior-year quarter. The reported loss also came in wider than the consensus mark of a loss of $445 million.
Financial Position
General Motors had cash and cash equivalents of $19,153 million as of Dec 31, 2022, compared with $20,067 million as of Dec 31, 2021. The long-term automotive debt at the end of the quarter was $15,885 million compared with $16,355 million as of Dec 31, 2021.
General Motors’ automotive cash provided by operating activities amounted to $7,488 million during the quarter under review, down 20.2% year over year. The company recorded an adjusted automotive free cash flow of $4,460 million in fourth-quarter 2022, down 30.3% year over year.
2023 Guidance
For 2023, General Motors’ full-year net income is estimated in the band of $8.7-$10.1 billion. The adjusted EBIT forecast is in the range of $10.5 billion to $12.5 billion. Adjusted EPS is expected in the band of $6-$7. Adjusted automotive free cash flow is envisioned between $5 billion and $7 billion.
Zacks Rank and Key Picks
General Motors currently carries a Zacks Rank #5 (Strong Sell).
A few better-ranked players in the auto space include Mercedes-Benz Group AG (MBGAF - Free Report) , Byd Co (BYDDY - Free Report) and BMW AG (BAMXF - Free Report) . All companies currently sport a Zacks Rank #1 (Strong Buy).
Mercedes Benz develops, manufactures, and sells passenger cars comprising premium and luxury vehicles of the Mercedes-Benz brand. The Zacks Consensus Estimate for MBGAF’s 2022 earnings implies year-over-year growth of 215%.
Byd is principally engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries and mobile phone components. The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings implies year-over-year growth of 42% and 32%, respectively.
BMWis a multi-brand automobile manufacturer that focuses on the premium segments of the worldwide automobile and motorcycle markets. The Zacks Consensus Estimate for BAMXF’s 2022 sales and earnings implies year-over-year growth of 9.04% and 30.30%, respectively.
You can see the complete list of today’s Zacks #1 Rank stocks here.