GM Q4 Earnings: Strong Performance Amidst Challenges

Key Takeaways:

* Revenue projected at $44.46 billion, up from $42.98 billion YoY
* Adjusted EPS estimated at $1.83 on adjusted net income of $1.954 billion
* Challenges include EV growth setbacks and China business writedown

Financial Performance:

Investors anticipate strong Q4 results from GM, following a successful 2024 driven by robust truck and SUV sales. The company is expected to report revenue of $44.46 billion, surpassing last year's $42.98 billion. Profitability is also expected to impress, with adjusted EPS projected at $1.83 on adjusted net income of $1.954 billion.

Challenges:

GM faces challenges in 2025, despite its strong performance. The company has revised its EV production volume forecast to a lower range of 200,000 units, impeding its target for EV profitability. Additionally, GM recently merged its autonomous Cruise business and took a $5 billion writedown in its China operations.

Sales Performance:

Sales have been a driving force behind GM's profitability. In Q4, sales surged 21% YoY, contributing to 2.7 million vehicles sold in 2024. Full-size pickup and SUV sales remained strong, while GM's dominance in the full-size SUV segment continued.

Share Repurchase:

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

Outlook:

CEO Mary Barra expects 2025 adjusted EBIT to remain in line with 2024 results. Investors will seek guidance on challenges related to EVs, self-driving technology, and trade issues during the Q4 earnings release.

Author:

Pras Subramanian, Yahoo Finance