GM lifts full-year outlook after strong Q1
By Benjamin Chiou
Date: Tuesday 23 Apr 2024
(Sharecast News) - US auto giant General Motors on Tuesday lifted its profit and cash flow guidance for the full year after a strong first quarter in which it beat market forecasts.
The company said it now expects net income to be between $10.1bn and $11.5bn, with the mid-point some $300m ahead of the previous guidance range of $9.8bn and $11.2bn. On an adjusted basis, the earnings before interest and tax guidance range has been hiked by $500m to between $12.5bn and $14.5bn.
Meanwhile, automotive operating cash flow forecasts have been lifted by $300m to $18.3bn to $21.3bn.
The move came after a solid start to 2024, during which revenues rose 7.6% year-on-year to $43.01bn, after strong sales of pickup trucks in the US, beating the $41.92bn expected by analysts.
Net income jumped 24.4% to $2.98bn, with diluted adjusted earnings per share rising 18.6% to $2.62, well ahead of the $2.15 forecast.
However, adjusted EBIT rose just 1.8% to $3.87bn as a result of a 50 basis-point fall in the EBIT-adjusted margin to 9.0%.
"Globally, our team is leaning into every opportunity with a focus on profitability to build on our strong start to 2024. That's why we're raising our full-year earnings, earnings per share and free cash flow guidance," said chair and chief executive Mary Barra.
"As we continue to strengthen our ICE portfolio, scale EVs and reinvest in the business, we are very focused on capital efficiency, enhancing profitability and free cash flow, and we will continue to take steps to create shareholder value," Barra said.
The stock was up nearly 5% at $45.30 by 1001 in New York.
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