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General Motors raises 2024 guidance after big first-quarter earnings beat

DETROIT — General Motors on Tuesday raised its 2024 guidance after beating Wall Street’s top- and bottom-line expectations for the first quarter.

The automaker said it was boosting its forecast after strong North American operations offset losses elsewhere during the first quarter. The company now expects adjusted earnings of $12.5 billion to $14.5 billion, or $9 to $10 a share, up from a previous range of $12 billion to $14 billion, or $8.50 to $9.50 a share.

GM also raised expectations for adjusted automotive free cash flow to a range of $8.5 billion to $10.5 billion, up from an earlier forecast of $8 billion to $10 billion.

GM shares jumped more than 4% Tuesday following the report.

Here’s how the company performed in the first quarter, compared with average estimates compiled by LSEG:

  • Earnings per share: $2.62 adjusted vs. $2.15 expected
  • Revenue: $43.01 billion vs. $41.92 billion expected

GM said revenue during the first three months of this year was up 7.6% from roughly $40 billion a year earlier. Its net income during the first quarter rose about 26% to $2.95 billion.

The automaker’s net income attributable to stockholders, which excludes some dividend payouts, was up 24.4% to $2.98 billion, or $2.56 per share, from the first quarter of 2023 when the company reported net income attributable to stockholders of about $2.4 billion, or $1.69 a share. 

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GM’s stock price

The automaker’s adjusted earnings before interest and taxes were $3.87 billion, or $2.62 per share, during the first quarter. 

North America

China

Jacobson, however, noted GM’s loss in China was “slightly better” than the company had previously forecast.

EVs

2024 Chevrolet Silverado HD ZR2

GM

While North America continues to be strong for the automaker, vehicle inventory levels in the U.S. are rising. The company ended the first quarter with a 63 days’ supply of vehicles – above the automaker’s previous guidance of 50 days to 60 days.

Jacobson said the company is watching those levels but is not too concerned about the number of vehicles ahead of a spring and summer selling season that includes some factory shutdowns for retooling.

“We actually feel pretty good about where we are,” he said. “It’s something that obviously we’re watching. But right now, no signs of any softness that we can see.”

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