General Motors surprised Wall Street Tuesday with better-than-expected first-quarter earnings and revenue with the auto giant also raised its full-year predictions. GM stock surged early Tuesday.
The auto giant announced Tuesday that Q1 EPS grew 18.5% to $2.62 while revenue increased more than 7% to $43.01 billion. Analysts had expected earnings of $2.13 per share with sales totaling $41.09 billion.
General Motors also raised its 2024 view Tuesday. The company expects full-year earnings of $9.00-$10.00 per share on adjusted earnings before interest and taxes (EBIT) between $12.5 billion to $14.5 billion. GM previously forecast earnings between $8.50 and $9.50 per share on adjusted (EBIT) of $12 billion- $14 billion. Wall Street predicts full-year earnings of $8.89 per share on $172.27 billion in sales, according to FactSet.
In early April, General Motors reported that U.S. vehicle sales fell 1.5% to 594,233 units in Q1. GM also announced that during Q1 it delivered more than 441,000 vehicles in China.
GM Stock
General Motors stock gained 4.8% to 45.30 during market action Tuesday, advancing above an official 43.63 buy point on a weekly chart, according to MarketSurge analysis.
GM stock on Monday advanced 2% to 43.21, rebounding from the 10-week line.
Shares hit a two-year high of 46.04 on April 4.
GM EV Demand
At the end of January, General Motors reported a 41.5% decline in earnings to $1.24 per share in Q4, the company's first earnings drop in five quarters. Revenue ticked down a fraction to $42.98 billion to mark its first sales decrease in seven quarters.
GM took a $1.6 billion charge, the impact of unsold EVs, in Q4. The company also reported an $800 million charge during the quarter tied to the recall of Chevy Bolt batteries.
At the time, Chief Executive Mary Barra said she expected the U.S. electric vehicle portfolio to turn profitable in the second half of 2024, based on demand and production growth projections. GM cited third-party forecasts that see U.S. EV deliveries to rise at least 10% in 2024, compared to 7% growth last year, "which would mean another year record of EV sales," Barra wrote.
During 2023, General Motors delivered 2.6 million vehicles in the U.S., up 14% year-over-year. The company touted a 16.2% total market share in the U.S. last year. Meanwhile, the company and its joint ventures delivered 2.1 million cars to China last year.
Full-year earnings for 2023 rose 1.2% to $7.68 per share on 9.6% revenue growth to $171.84 billion.
General Motors Stock, Ford And Tesla On Deck
Following General Motors Q1 report, Tesla announces first-quarter earnings and revenue after the market closes Tuesday. Then, Ford reports Q1 earnings and revenue late Wednesday.
Wall Street forecasts Ford earnings per share falling 32% to 43 cents in Q1 with revenue growing more than 3% to $42.93 billion.
Ford stock rose 0.4% early Tuesday amid GM's strong results and guidance. Shares surged 6.1% Monday to 12.88, reclaiming its 50-day moving average after finding support at the 200-day line.
Ahead of earnings, Ford stock is below an official 13.95 buy point from a cup-with-handle base, according to MarketSurge.
Earlier this month, Ford announced U.S. sales grew 6.8% in Q1, with overall EV sales including hybrids jumping 82%.
On March 26, Ford management reaffirmed guidance for annual core profit of $10 billion-$12 billion. Ford again said hybrids will be key as EVs slow. The company previously said it is shifting investments from EVs to hybrid vehicles.
GM stock has a 76 Composite Rating out of a best-possible 99. Shares also have an 89 Relative Strength Rating and a 51 EPS Rating.
Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.
YOU MAY ALSO LIKE:
Is Tesla Stock A Buy Or A Sell?
Get Full Access To IBD Stock Lists And Ratings
Learning How To Pick Great Stocks? Read Investor's Corner
Is Rivian A Buy Right Now After It Launched Its New Product Line?
