Business

General Motors Beats Expectations, Raises 2024 Guidance

General Motors exceeded Wall Street’s expectations for the first quarter, prompting an upward revision of its 2024 guidance. The company’s strong performance in North American operations drove this success, offsetting losses in other regions.

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General Motors

Adjusted earnings for the first quarter reached $2.62 per share, surpassing analysts’ estimates of $2.15 per share. Revenue also outperformed expectations, coming in at $43.01 billion compared to the anticipated $41.92 billion.

General Motors revenue increased by 7.6% from the previous year to approximately $40 billion, with net income rising by 26% to $2.95 billion. Adjusted earnings before interest and taxes amounted to $3.87 billion, or $2.62 per share, during the quarter.

The company’s North American division, fueled by strong truck sales, played a pivotal role in its first-quarter success. Adjusted earnings in this segment rose to $3.84 billion, contributing to an adjusted profit margin of 10.6% for the region, surpassing the projected range of 8% to 10% for the year.

Despite challenges in international markets, steady vehicle pricing and increased retail sales in North America buoyed General Motors performance. Sales of profitable pickups remained robust, while production of electric vehicles (EVs) continued to scale up after initial production bottlenecks.

CEO Mary Barra emphasized GM’s commitment to capital efficiency, profitability, and shareholder value. The company aims to produce between 200,000 and 300,000 EVs in 2024 while strengthening its internal combustion engine portfolio.

While General Motors vehicle inventory in the U.S. has increased, management remains optimistic about the upcoming selling season. The company ended the first quarter with a 63 days’ supply of vehicles, slightly above previous guidance but not a cause for concern.

General Motors financing arm reported adjusted earnings of $737 million, demonstrating resilience despite challenges. The company remains focused on enhancing profitability, free cash flow, and capital efficiency.

This story is developing, and updates will be provided as necessary.

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