General Motors CEO Mary Barra, center, at the New York Stock Exchange, Nov. 17, 2022.
Source: NYSE
DETROIT — General Motors on Tuesday raised key guidance for 2023 after reporting first-quarter results that topped Wall Street’s top- and bottom-line forecasts. Here’s how GM did, compared with what Wall Street expected based on average estimates compiled by Refinitiv:
- Adjusted earnings per share: $2.21 vs. $1.73 expected
- Revenue: $39.99 billion vs. $38.96 billion expected
For the full year, GM is raising its adjusted earnings expectations to a range of $11 billion to $13 billion, or $6.35 to $7.35 a share, up from a previous range of $10.5 billion to $12.5 billion, or between $6 and $7 a share. GM also raised expectations for adjusted automotive free cash flow to a range of $5.5 billion and $7.5 billion, up from an earlier forecast of $5 billion to $7 billion.
GM lowered its guidance, however, for net income attributable to stockholders due to $875 million in special charges related to a previously announced employee buyout program during the quarter. The new range is between $8.4 billion and $9.9 billion, down from $8.7 billion to $10.1 billion.
GM shares rose about 3% in premarket trading following the report.
CFO Paul Jacobson said the company felt confident in raising its adjusted earnings guidance after first-quarter results came in above the company’s internal expectations, including continued demand for high-end models. Cost-cutting efforts such as the employee buyout program also impacted results faster than expected, he said.
The employee buyouts were part of GM’s plan announced earlier this year to cut $2 billion in structural costs by the end of 2024.
“All-in-all we’re feeling confident about 2023,” Jacobson said during a call with reporters.
GM’s first-quarter results included adjusted earnings of $3.8 billion, down 6% from a year earlier. The company’s net income attributable to stockholders, which excludes some dividend payouts, was down by 18.5% to about…
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