General Motors (GM) Q1 2023 results


General Motors CEO Mary Barra, center, at the New York Stock Exchange on November 17, 2022.

Source: NYSE

DETROIT — General Motors is expected to release its first-quarter results before the bell on Tuesday.

GM chief financial officer Paul Jacobson said earlier this month that the first quarter was going “just in line” with the company’s expectations, noting that sales were up 18%.

“We gained market share during this period, and we did it without chasing the price. We did it without increasing or increasing the incentives,” he said on April 4 during a BofA Securities conference.

Here’s what Wall Street expects, according to consensus estimates from Refinitiv:

  • Adjusted earnings per share: $1.73
  • Income: $38.95 billion

These results would mark a sharp year-over-year decline in adjusted EPS, but an 8.3% increase in revenue, as vehicle profits normalize from inflated levels a year ago due to tight supply and resilient demand.

GM’s forecast for 2023 calls for net income attributable to shareholders of between $8.7 billion and $10.1 billion. He expects adjusted earnings before interest and taxes of $10.5 billion to $12.5 billion and adjusted earnings per share of between $6 and $7. Auto adjusted free cash flow is expected to be between $5 billion and $7 billion.

Besides earnings, Wall Street will be watching additional details about a sweeping employee buyout program that is a major part of the automaker’s plans to cut $2 billion from its structural costs by the end of 2024.

Jacobson said the company expects to take a charge of around $1 billion in the first quarter as a result of the program, which saw around 5,000 employees globally opt into buyouts.

Wall Street will also be watching for any new information regarding the company’s EV production, which has been slow to ramp up, as well as any commentary on the current EV landscape following the industry leader’s price cuts. . You’re here.

Analysts are cautiously optimistic about first-quarter earnings for much of the auto industry amid broader economic concerns.

“Clean it all up, and we have what’s shaping up to be a ‘strong’ quarter with an ‘upbeat’ outlook that may not ‘land well’ with investors focused on an uncertain macro,” Morgan analyst Adam Jonas said. Stanley, in April. 14 note to investors.

GM shares have performed poorly this year, up about 2%. They closed Monday at $34.29 per share, down from a 52-week high of $43.63 per share.

This story is developing. Please check for updates.

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