- General Motors projects its adjusted earnings per share (EPS) for 2025 to be between $11 and $12, surpassing the expected $10.60.
- Adjusted earnings before interest and taxes (Ebit) are forecasted between $13.7 billion and $15.7 billion, exceeding the estimated $13.58 billion.
- The company’s adjusted automotive free cash flow is anticipated to range from $11 billion to $13 billion.
- Automotive net cash from operating activities is expected between $21 billion and $24 billion.
- Projected net income is between $11.2 billion and $12.5 billion, greater than the estimated $10.63 billion.
- For the fourth quarter:
- Adjusted EPS was $1.92, up from $1.24 year-over-year, beating the estimate of $1.83.
- Net sales and revenue stood at $47.70 billion, a 11% increase year-over-year, higher than the forecasted $44.46 billion.
- Cruise net sales and revenue notably increased to $181 million from $25 million year-over-year, significantly exceeding the $26 million estimate.
- Automotive net sales and revenue reached $43.60 billion, marking an 11% rise year-over-year, surpassing the projected $39.62 billion.
- GM Financial net sales and revenue amounted to $4.11 billion, a growth of 9.9% year-over-year, above the $3.84 billion expectation.
- Adjusted Ebit was $2.51 billion, increasing by 43% year-over-year, just above the estimate of $2.39 billion.
- North America adjusted Ebit was $2.27 billion, up 13% year-over-year, though slightly below the $2.5 billion estimate.
- Adjusted automotive free cash flow was $1.82 billion, a 36% increase year-over-year, higher than the $1.19 billion estimate.
- GM North America (GMNA) vehicle sales were 876,000 units, a 12% year-over-year rise, exceeding the estimated 796,289 units.
- GM International (GMI) vehicle sales were 163,000 units, a 1.2% year-over-year increase, beating the expected 151,456 units.
- Comments:
- GM Financial earned $719 million in EBT-adjusted in the fourth quarter.
- Net income for the fourth quarter was impacted by over $5 billion in special charges, mainly due to $4 billion in non-cash restructuring charges and impairments related to certain China joint ventures, alongside $0.5 billion in charges from ceasing funding for the Cruise robotaxi business.
- The electric vehicle (EV) portfolio turned variable profit positive in the fourth quarter.
“`
General Motors on Smartkarma
On Smartkarma, renowned analyst William Keating recently covered General Motors with a bearish sentiment in his report titled “General Motors Abruptly Pulls The Plug On Cruise.” Keating highlighted GM’s decision to stop funding its struggling Cruise subsidiary, putting an end to its RoboTaxi venture. The market response to this development was subdued, with Microsoft also announcing an $800 million write-off from a previous investment in Cruise due to recent challenges faced by the subsidiary.
Furthermore, Baptista Research provided a contrasting bullish outlook on GM in their analysis titled “General Motors Company (GM): An Analysis Of The Impact Of Electric Vehicle Production & Sales Volume On Revenues & Profitability & Major Drivers.” The report focused on GM’s positive financial performance in the third quarter of 2024, emphasizing the company’s strength in both electric vehicles (EVs) and traditional internal combustion engine (ICE) vehicles. Baptista Research highlighted GM’s upward revision of its earnings forecasts, demonstrating confidence in GM’s future prospects.
A look at General Motors Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
General Motors Co., a leading manufacturer of new cars and trucks, shows a promising long-term outlook based on its Smartkarma Smart Scores. With a high Value score of 5, GM is recognized for its strong financial performance relative to its stock price. Additionally, the company’s Growth score of 4 suggests potential for expansion and development in the future. Combined with a Momentum score of 5, indicating a positive trend in the stock price, General Motors seems to be on a steady path towards growth and profitability.
Despite having lower scores in Dividend and Resilience at 2 each, General Motors‘ overall outlook remains favorable. The company’s diverse offerings, including special features for drivers, OnStar vehicle protection, and XM satellite radio, position it well in the global market. With a strong emphasis on value and growth, General Motors appears well-equipped to navigate the challenges and opportunities in the automotive industry in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
