GM Q4 Earnings: Strong Revenue and EPS Expected Amidst Challenges

Key Points:

* GM (GM) is expected to report strong Q4 results, continuing its positive quarterly performance in 2024.
* Analysts anticipate revenue of $44.46 billion, exceeding last year's $42.98 billion.
* Adjusted EPS is forecasted at $1.83 on adjusted net income of $1.954 billion.
* GM CEO Mary Barra projects similar 2025 adjusted EBIT as 2024 results.

Sales Performance and Repurchase Plans

* Strong truck and SUV sales, particularly full-size pickups, boosted GM's sales by 21% in Q4 and 4% in 2024.
* GM's share repurchase plans, including a $6 billion buyback program, contributed significantly to the share price increase.

EV Progress and Challenges

* Electric vehicles like the Cadillac Lyriq and Chevrolet Equinox EV continue to sell well.
* GM has revised its EV production forecast to 200,000 units for 2025.
* Cost-cutting measures aim to reduce EV production costs by $2 billion to $4 billion.

Business Challenges

* GM's autonomous Cruise business was merged with its consumer-facing technology group.
* A $5 billion writedown in the China business occurred in Q4 due to losses and impairment charges.
* Trade issues and tariffs pose potential threats to GM's profitability.

Investor Outlook

* Investors will monitor GM's earnings call for updates on EV challenges, autonomous technology, and regional issues that may impact the company's performance.