It has been about a month since the last earnings report for General Motors Company (GM Quick QuoteGM - Free Report) . Shares have lost about 1.5% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is General Motors Company due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

General Motors Q4 Earnings Top Estimates

General Motors 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%.

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.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

VGM Scores

At this time, General Motors Company has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, General Motors Company has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

General Motors Company belongs to the Zacks Automotive - Domestic industry. Another stock from the same industry, Tesla (TSLA Quick QuoteTSLA - Free Report) , has gained 11.8% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.

Tesla reported revenues of $24.32 billion in the last reported quarter, representing a year-over-year change of +37.2%. EPS of $1.19 for the same period compares with $0.85 a year ago.

For the current quarter, Tesla is expected to post earnings of $0.86 per share, indicating a change of -19.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -7.1% over the last 30 days.

Tesla has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.