GM Investors Anticipate Strong Earnings Despite 2025 Challenges

Revenue and Profitability Estimates

Analysts project GM's fourth-quarter revenue to reach $44.46 billion, surpassing last year's $42.98 billion. Adjusted EPS is expected to hit $1.83 on adjusted net income of $1.954 billion.

Full-Year Guidance

GM updated its full-year guidance after 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 Performance

GM's strong sales performance, particularly in the US, contributed to its profitability. Q4 sales surged 21% year-over-year and 4% in 2024, resulting in 2.7 million vehicles sold. Full-size pickup sales reached their highest level since 2007, while full-size SUVs maintained their category dominance for the 50th consecutive year.

Stock Repurchase Program

GM's share repurchase plans have boosted its stock price. The company recently announced plans to repurchase $6 billion in common shares, adding to an existing $10 billion ASR program. Additionally, it increased its dividend by 33% in January 2024.

EV Segment

Cadillac Lyriq and Chevrolet Equinox EV models have been successful, but growth has not met initial projections. GM revised its EV production target to 200,000 units, aiming for EV profitability based on positive variable profit margins. The company plans to reduce EV costs by $2 billion to $4 billion in 2025.

Challenges

GM faced challenges in 2024, including:

* Merging its Cruise business with its in-house autonomous technology group
* A $5 billion writedown in its China business due to loss of value
* Threats of tariffs on goods from Canada, Mexico, and China

Investor Outlook

Investors will closely monitor GM's earnings report for updates on these challenges, as well as its EV strategy and regional issues.