On January 5, 2023, a GMC pickup truck was displayed for sale inside a General Motors dealership in Austin, Texas.
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Detroit- General Motors The company is scheduled to report fourth-quarter earnings before the bell on Tuesday.
Wall Street expected the following, according to an average estimate compiled by London Stock Exchange Group (LSEG, formerly Refinitiv).
- Adjusted earnings per share: $1.16
- income: US$38.67 billion
These results meant revenue fell 10.3% from the year-earlier period and adjusted earnings per share fell 45.3%.General Motors Fourth Quarter 2022 Results This included revenue of $43.11 billion, net income to shareholders of $2.0 billion and adjusted EBIT of $3.8 billion.
In addition to quarterly earnings, investors will be looking at the company’s new labor contract with the United Auto Workers last year and any remaining or unexpected costs incurred in its 2024 guidance.
Wall Street analysts expect GM’s forecast to be “flat” compared with last year’s earnings. Favorable auto pricing is normalizing, delivering record profits in recent years. At the same time, cost-cutting measures are expected to help offset higher labor costs from the UAW deal.
In November, General Motors CEO Mary Barra in a statement said the company is finalizing a 2024 budget that will “fully offset the incremental costs of our new labor agreement.”
GM restored 2023 guidance in November, which included shareholder net income of $9.1 billion to $9.7 billion, and earnings per share of $6.52 to $7.02; adjusted EBIT of $11.7 billion to $12.7 billion, adjusted Post-earnings per share ranged from $7.20 to $7.70; adjusted automotive free cash flow ranged from $10.5 billion to $11.5 billion.
The guidance includes an estimated $1.1 billion in adjusted EBIT impact from roughly six weeks of U.S. labor strikes, as well as some costs related to a $10 billion accelerated share buyback program announced in November.
Investors will also be interested in any updates on GM’s new electric vehicles, as well as GM’s majority-owned self-driving car subsidiary Cruise, which is currently under multiple investigations following an October accident involving a pedestrian in San Francisco.
Cruise and GM released the results of an internal investigation into the incident last week, outlining cultural problems, regulatory incompetence and poor leadership at the company, but finding that officials did not intentionally deceive or mislead regulators.
The companies also disclosed that Cruise remains under investigation by multiple entities, including the U.S. Department of Justice and the U.S. Securities and Exchange Commission.
This is breaking news. Please check back for additional updates.
—CNBC Michael Bloom contributed to this report.
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