GM Investors Anticipate Strong Q4 Earnings, But Challenges Arise
GM investors eagerly await the automaker's fourth-quarter results, scheduled for Tuesday morning, amid expectations of continued strong performance after a successful 2024.
Financial Performance Outlook
Analysts forecast GM's revenue for the quarter to reach $44.46 billion, surpassing the $42.98 billion reported in Q4 2023. Adjusted EPS is anticipated at $1.83, while adjusted net income should hit $1.954 billion.
Full-Year Guidance
GM has provided updated full-year guidance following its Q3 results:
* 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
Sales and Profitability
GM's strong truck and SUV sales, coupled with positive performance in its EV business, have contributed to its financial success. In Q4, sales climbed 21% year-over-year, while full-stock pickup sales reached their highest level since 2007.
Stock repurchase programs have also played a significant role in boosting GM's share price.
Growth and Challenges
Despite the success of EVs like the Cadillac Lyriq and Chevrolet Equinox EV, GM's EV growth has been slower than anticipated. The company has revised its production volume forecast to 200,000 units, but plans to cut EV costs by $2 billion to $4 billion in 2025.
GM also faced challenges in 2024, including the winding down of its Cruise business and a $5 billion writedown in its China operations.
Investor Expectations
Investors will seek clarity on GM's plans to address ongoing challenges, such as potential trade barriers and the development of its autonomous driving technology. The automaker is expected to provide guidance on these issues in its upcoming earnings release.