General Motors Earnings Blast Street Forecasts; Sees Robust 2023 Profits
GM blasted Street profit forecasts with adjusted earnings of $2.12 per share on revenues of $43.1 billion.
GM blasted Street profit forecasts with adjusted earnings of $2.12 per share on revenues of $43.1 billion.
Updated at 7:54 am EST
General Motors (GM) - Get Free Report posted stronger-than-expected fourth quarter earnings Tuesday, while issuing a robust 2023 outlook, following a year in which the carmaker overtook Toyota as the country's biggest seller.
General Motors said adjusted earnings for the three months ending in December came in at $2.12 per share, up 57% from the same period last year and well ahead of the Street consensus of $1.69 per share. Group revenues were pegged at $43.1 billion, GM said, a 28.3% increase from last year that topped analysts' consensus of $40.65 billion tally.
GM delivered 623,261 cars over the three months ending in December, a 41% increase from last year and a tally that reclaimed the full-year U.S. lead over Toyota (TM) - Get Free Report - which bested both Ford (F) - Get Free Report and GM in total 2021 sales for the first time since 1931.
Looking into the coming year, General Motors said it sees adjusted net income in the region of $10.5 billion to $12.5 billion, well ahead of analysts' estimates, with earnings in the range of $6 to $7 per share.
"We expect that our momentum will help us deliver strong results once again in 2023," said CEO Mary Barra. "Our EVs are transformational in so many ways. We’re earning new customers. Our investments are creating new jobs. We’re moving closer to a world with zero crashes, zero emissions and zero congestion, and we believe our R&D, supply chain, manufacturing scale and distribution network will unlock the profitability of EVs."
GM shares were marked 4.6% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $37.97 each.
Earlier this week, GM's main U.S. rival, Ford Motor F, said it would boost production of its flagship EV, the Mustang Mach-E, while cutting overall car and battery prices as it looks to close the gap on market leader Tesla TSLA over the coming years.
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