General Motors (NYSE: GM) stock surged nearly 8% on Tuesday following the release of the fourth-quarter financial report, which outperformed expectations both in terms of revenue and profit. In addition, the company provided a 2024 full-year profit guidance that aligned with its initial forecast for 2023.
GM’s fourth quarter saw a reported EPS of $1.24 and revenue of $42.98 billion, marking a decrease from the prior year’s EPS of $2.12 and revenue of $43.1 billion.
In 2023, the firm achieved an EPS of $7.68 and a 9.6% increase in revenue to $171.84 billion from the previous year, outperforming all estimates. This positive performance occurred despite challenges, including a six-week strike by the United Auto Workers union, resulting in a financial impact of $1.1 billion.
Future Objectives Overview
In a shareholder’s note, CEO Mary Barra stated that GM outperformed all competitors in U.S. vehicle sales last year, with all its brands experiencing a rise in sales.
She further stated that the company’s future objectives include optimizing its internal combustion engine (ICE) lineup with fresh models, achieving profitable growth in the electric vehicle (EV) sector, ensuring robust margins and cash flow, and reorienting and reintroducing its self-driving vehicle division, Cruise.
GM Announces $1 Billion Cut in Cruise Expenditure
GM suspended Cruise testing in October after its autonomous vehicles were involved in two California accidents, triggering state and federal investigations. Subsequently, co-founder and CEO Kyle Vogt resigned the following month. GM has now revealed plans to cut its Cruise expenditure by around $1 billion this year, a significant reduction from the $2.7 billion invested in 2023.
GM acknowledged a $1.7 billion loss on electric vehicles (EVs) the previous year. Barra, the CEO of General Motors, stated that although electric vehicle (EV) sales have slowed, the company expects its lineup in the United States to start making a profit in the second half of 2024.
GM expects a full-year profit ranging from $8.50 to $9.50 per share, above forecasts.
General Motors (NYSE: GM) Stock Reaction
GM stock hopped 7.80% on Tuesday. The traders had exchanged hands with 57,898,967 (57.89 million) shares compared to the average daily trading volume of 20.06 million.
