Strong First Quarter Results Prompt GM to Raise Outlook and Anticipate Profitability in Electric Vehicle Business by Year End

(NYSE:GM) continued its momentum of strong earnings with robust first-quarter results, prompting the automaker to revise its full-year guidance upwards and maintain optimism regarding the profitability of its electric vehicle (EV) business by the latter half of 2024.
In the first quarter, GM reported revenue of $43.0 billion, surpassing analysts’ expectations of $42.09 billion. Adjusted earnings per share stood at $2.62, exceeding forecasts for $2.12, with adjusted EBIT reaching $3.9 billion, outperforming estimates of $3.12 billion.
Buoyed by its strong performance, GM’s shares surged 5% in early trading. The company revised its 2024 guidance, projecting full-year adjusted EBIT between $12.5 billion and $14.5 billion, up from the previous outlook of $12 billion to $14 billion. Adjusted earnings are now anticipated to range between $9.00 and $10.00 per share, compared to the earlier estimate of $8.50 to $9.50.
GM also raised its automotive operating cash flow outlook to $18.3 billion to $21.3 billion, with adjusted automotive free cash flow forecasted at $8.5 billion to $10.5 billion.
CEO Mary Barra emphasized the company’s focus on capital efficiency, profitability, and shareholder value. CFO Paul Jacobson underscored the significance of the guidance revision in light of GM’s strong first quarter.
Regarding its EV business, GM anticipates “positive variable profit” in the second half of 2024, with sales projections of approximately 200,000 to 300,000 EVs by year-end. The company expects an EBIT margin improvement of 60 points in the EV segment by 2024, aiming for a “mid-single digit EBIT margin” by 2025, inclusive of clean energy tax credits.
GM highlighted cost reductions in EV production, with the Cadillac LYRIQ EV now $12,000 cheaper to manufacture due to lower battery and module costs. Despite scaling back its EV production goal, GM remains committed to customer-centric pacing. Barra emphasized leveraging the strength of the traditional gas-powered business to bolster the EV segment over time.
In Q1, GM’s US sales surpassed estimates, with 594,233 vehicles delivered, albeit down 1.5% year-over-year due to reduced fleet sales. Notable gains were observed in EV sales, particularly with models like the Cadillac LYRIQ, Hummer EV, and Silverado EV. Chevrolet’s Blazer EV reported 500 sales following a software issue-related halt, while the Equinox EV is set to commence sales in the second quarter.
GM also announced the resumption of operations at Cruise, its autonomous driving unit, in the Phoenix area, signaling a renewed focus on advancing autonomous vehicle technology.

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