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General Motors (GM) Q4 Earnings Beat Estimates, Fall Y/Y
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General Motors (GM - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.24 per share, which surpassed the Zacks Consensus Estimate of $1.12. The bottom line, however, decreased from the year-ago quarter’s level of $2.12. Revenues of $42.98 billion beat the Zacks Consensus Estimate of $40.78 billion but decreased from $43.1 billion recorded in the year-ago period.
The U.S. auto giant recorded adjusted earnings before interest and taxes (EBIT) of $1.75 billion, lower than $3.79 billion in the prior-year quarter. The automaker’s share in the GM market was 8.5% in the reported quarter compared with 9.1% in the year-ago quarter.
General Motors Company Price, Consensus and EPS Surprise
GM North America (“GMNA”) generated net revenues of $35.23 billion, down from $35.47 billion recorded in the corresponding period of 2022. However, the figure outpaced our model projection of $33.2 billion on higher-than-expected deliveries. Wholesale vehicle sales in the GMNA unit totaled 782,000 units, down from 787,000 units reported in the year-ago quarter. The figure, however, surpassed our estimate of 748,000 units. The segment’s operating profit totaled $2.01 billion, down from $3.65 billion recorded in the year-earlier period. The metric also lagged our estimate of $2.66 billion due to EV inventory allowance adjustments and the strike’s impact.
GM International's (“GMI”) net revenues in the reported quarter amounted to $3.94 billion, down from the year-ago quarter’s $4.32 billion. The metric also missed our estimate of $4.32 billion due to lower-than-expected deliveries. The segment’s wholesale vehicle sales of 161,000 units decreased from 180,000 units in the year-ago quarter and also missed our projection of 176,000 units. GMI reported an operating profit of $269 million, which declined from the year-ago quarter's profit of $272 million and also lagged our estimate of $309.7 million.
GM Financial generated net revenues of $3.74 billion in the quarter, up from $3.28 billion recorded in the year-ago period and ahead of our prediction of $3.2 billion. The segment recorded an EBIT-adjusted operating profit of $707 million, down from $775 million recorded in the year-ago period. The metric also missed our prediction of $726.8 million.
GM Cruise recorded net revenues of $25 million in the fourth quarter, flat year over year. The metric came in line with our projection as well. The segment posted an operating loss of $792 million, wider than a loss of $524 million reported in the prior-year quarter. The reported loss also came in wider than our estimate of a loss of $610.4 million due to lower volume and mix.
Financial Position
General Motors had cash and cash equivalents of $18.85 billion as of Dec 31, 2023, compared with $19.15 billion as of Dec 31, 2022. The long-term automotive debt at the end of the quarter was $15.98 billion compared with $15.88 billion as of Dec 31, 2022.
Net automotive cash provided by operating activities amounted to $4.66 billion during the quarter under review. The company recorded an adjusted automotive free cash flow of $1.34 billion in fourth-quarter 2023, down from $4.46 billion recorded in the year-ago period.
GM declared its first-quarter dividend of 12 cents per share, marking a 35% increase from the prior payout. The dividend will be paid on Mar 14, 2024, to shareholders as of Mar 1, 2024.
2024 Guidance
For full-year 2024, GM expects adjusted EBIT in the range of $12-$14 billion. Adjusted diluted EPS is anticipated in the range of $8.50-$9.50. Capex is predicted to be in the $10-$11 billion range. Adjusted automotive free cash flow is expected in the band of $8-$10 billion.
The Zacks Consensus Estimate for HMC’s 2024 sales and earnings implies year-over-year growth of 14.8% and 37.3%, respectively. The EPS estimates for 2024 and 2025 have moved up 7 cents and 3 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings suggests year-over-year growth of 36.5% and 70.6%, respectively. The EPS estimate for 2024 has improved 31 cents in the past seven days.
The Zacks Consensus Estimate for MBGAF’s 2023 sales suggests year-over-year growth of 5.8%. The EPS estimates for 2023 and 2024 have improved a penny and 30 cents, respectively, in the past 60 days.
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General Motors (GM) Q4 Earnings Beat Estimates, Fall Y/Y
General Motors (GM - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.24 per share, which surpassed the Zacks Consensus Estimate of $1.12. The bottom line, however, decreased from the year-ago quarter’s level of $2.12. Revenues of $42.98 billion beat the Zacks Consensus Estimate of $40.78 billion but decreased from $43.1 billion recorded in the year-ago period.
The U.S. auto giant recorded adjusted earnings before interest and taxes (EBIT) of $1.75 billion, lower than $3.79 billion in the prior-year quarter. The automaker’s share in the GM market was 8.5% in the reported quarter compared with 9.1% in the year-ago quarter.
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 net revenues of $35.23 billion, down from $35.47 billion recorded in the corresponding period of 2022. However, the figure outpaced our model projection of $33.2 billion on higher-than-expected deliveries. Wholesale vehicle sales in the GMNA unit totaled 782,000 units, down from 787,000 units reported in the year-ago quarter. The figure, however, surpassed our estimate of 748,000 units. The segment’s operating profit totaled $2.01 billion, down from $3.65 billion recorded in the year-earlier period. The metric also lagged our estimate of $2.66 billion due to EV inventory allowance adjustments and the strike’s impact.
GM International's (“GMI”) net revenues in the reported quarter amounted to $3.94 billion, down from the year-ago quarter’s $4.32 billion. The metric also missed our estimate of $4.32 billion due to lower-than-expected deliveries. The segment’s wholesale vehicle sales of 161,000 units decreased from 180,000 units in the year-ago quarter and also missed our projection of 176,000 units. GMI reported an operating profit of $269 million, which declined from the year-ago quarter's profit of $272 million and also lagged our estimate of $309.7 million.
GM Financial generated net revenues of $3.74 billion in the quarter, up from $3.28 billion recorded in the year-ago period and ahead of our prediction of $3.2 billion. The segment recorded an EBIT-adjusted operating profit of $707 million, down from $775 million recorded in the year-ago period. The metric also missed our prediction of $726.8 million.
GM Cruise recorded net revenues of $25 million in the fourth quarter, flat year over year. The metric came in line with our projection as well. The segment posted an operating loss of $792 million, wider than a loss of $524 million reported in the prior-year quarter. The reported loss also came in wider than our estimate of a loss of $610.4 million due to lower volume and mix.
Financial Position
General Motors had cash and cash equivalents of $18.85 billion as of Dec 31, 2023, compared with $19.15 billion as of Dec 31, 2022. The long-term automotive debt at the end of the quarter was $15.98 billion compared with $15.88 billion as of Dec 31, 2022.
Net automotive cash provided by operating activities amounted to $4.66 billion during the quarter under review. The company recorded an adjusted automotive free cash flow of $1.34 billion in fourth-quarter 2023, down from $4.46 billion recorded in the year-ago period.
GM declared its first-quarter dividend of 12 cents per share, marking a 35% increase from the prior payout. The dividend will be paid on Mar 14, 2024, to shareholders as of Mar 1, 2024.
2024 Guidance
For full-year 2024, GM expects adjusted EBIT in the range of $12-$14 billion. Adjusted diluted EPS is anticipated in the range of $8.50-$9.50. Capex is predicted to be in the $10-$11 billion range. Adjusted automotive free cash flow is expected in the band of $8-$10 billion.
Zacks Rank & Key Picks
GM currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Honda Motor Co., Ltd. (HMC - Free Report) , BYD Company Limited (BYDDY - Free Report) and Mercedes-Benz Group AG (MBGAF - Free Report) . While both HMC and BYDDY sport a Zacks Rank #1 (Strong Buy), MBGAF carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HMC’s 2024 sales and earnings implies year-over-year growth of 14.8% and 37.3%, respectively. The EPS estimates for 2024 and 2025 have moved up 7 cents and 3 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings suggests year-over-year growth of 36.5% and 70.6%, respectively. The EPS estimate for 2024 has improved 31 cents in the past seven days.
The Zacks Consensus Estimate for MBGAF’s 2023 sales suggests year-over-year growth of 5.8%. The EPS estimates for 2023 and 2024 have improved a penny and 30 cents, respectively, in the past 60 days.