GM Earnings Preview: Investors Eye Continued Growth Amid Challenges

Revenue and Earnings Expectations

Analysts anticipate GM to report strong financial results for Q4 2024, with projected revenue of $44.46 billion (up from $42.98 billion in Q4 2023) and adjusted EPS of $1.83 (on adjusted net income of $1.954 billion).

Full-Year Guidance

Following Q3 results, GM revised its guidance for 2024:

* Adjusted EBIT: $14 billion to $15 billion
* Automotive operating cash flow: $22 billion to $24 billion
* Adjusted automotive free cash flow: $12.5 billion to $13.5 billion
* Diluted-adjusted EPS: $10 to $10.50

GM CEO Mary Barra expects adjusted EBIT in 2025 to be similar to 2024 results.

Sales Performance and Profitability

GM's strong truck and SUV sales, along with the surprising strength of its EV business, contributed to a 48% surge in its shares in 2024. In Q4, sales jumped 21% year-over-year and 4% for the full year, with full-size pickup sales at their highest level since 2007 and full-size SUV sales propelling GM to a 50-year-straight win in the segment.

GM's share repurchase plans also boosted its share price. The company authorized a $6 billion share buyback plan in June 2024, in addition to a $10 billion ASR program and a 33% dividend increase.

EV Challenges and Outlook

While GM's EVs like the Lyriq and Equinox EV have sold well, growth has been slower than projected. GM revised its EV production volume forecast to 200,000 units, and expects to trim EV costs by $2 billion to $4 billion in 2025.

However, GM expects EV profitability to improve significantly in the coming years, due to reduced EV production losses in 2024.

Other Challenges

In Q4, GM merged its autonomous Cruise business with its in-house consumer-facing autonomous technology group. The company also took a $5 billion writedown in its China business.

Investor Focus

Investors are looking for guidance on GM's EV, self-driving tech, and trade-related challenges when earnings are released on Tuesday morning.