- General Motors increased its full-year adjusted EPS forecast to $10 to $10.50 from the previous range of $9.50 to $10.50, with current estimates at $10.00.
- Full-year adjusted auto free cash flow forecast is raised to $12.5 billion to $13.5 billion, up from $9.5 billion to $11.5 billion.
- The adjusted EBIT forecast is now between $14 billion and $15 billion, previously $13 billion to $15 billion, with an estimate of $14.14 billion.
- The company’s net income prediction is $10.4 billion to $11.1 billion, previously $10 billion to $11.4 billion, with an estimate of $11.2 billion.
- Automotive net cash provided by operating activities is forecasted between $22 billion to $24 billion.
- Third-quarter adjusted EPS stands at $2.96, surpassing both the previous year’s $2.28 and the estimate of $2.45.
- Quarterly net sales and revenue reached $48.76 billion, a 10% year-over-year increase, exceeding the estimate of $44.69 billion.
- Cruise’s net sales and revenue climbed 4% year-over-year to $26 million, higher than the $22.5 million estimate.
- Automotive net sales and revenue rose 10% year-over-year to $44.74 billion, exceeding the estimate of $40.46 billion.
- The GM Financial segment reported $4.03 billion in net sales and revenue, up 11% year-over-year, beating the $3.85 billion estimate.
- North America’s adjusted EBIT grew 13% year-over-year to $3.98 billion, above the $3.55 billion estimate.
- International operations adjusted EBIT was $42 million, down 88% year-over-year and below the $58.6 million estimate.
- GM Financial’s adjusted EBT was $687 million, a 7.3% decline year-over-year, roughly matching the estimate of $686.1 million.
- Adjusted automotive free cash flow increased by 19% year-over-year to $5.83 billion.
- GMNA vehicle sales were 893,000 units, up 10% year-over-year, outperforming the estimate of 829,281 units.
- GMI vehicle sales were 140,000 units, a decrease of 18% year-over-year, below the 143,330-unit estimate.
- Overall adjusted EBIT was $4.12 billion, exceeding the estimate of $3.38 billion.
- Commentary highlights improvements in China sales, reduced dealer inventory, and achievement of 2024 EV production and profitability targets.
- The company expects positive EV variable profit in the fourth quarter of 2024 and aims to complete a $2 billion fixed cost reduction program by the year-end.
- Anticipates an EV profitability increase of $2 billion to $4 billion in 2025.
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General Motors on Smartkarma
Analysts on Smartkarma are closely covering General Motors, including research reports from Baptista Research. In one report titled “General Motors Company: What Is Their China Market Strategy & Why Are We Optimistic? – Major Drivers,” they highlighted GM’s robust financial performance in the second quarter of 2024. The review emphasized GM’s record revenue generation, driven by a strong lineup of internal combustion engine (ICE) trucks, SUVs, and electric vehicles (EVs). While substantial achievements were noted, there were also risks to consider for future growth.
In another report by Baptista Research, “General Motors Company: Resilience in Supply Chain & Commitment to China Yielding Positive Results? – Major Drivers,” analysts discussed GM’s solid first quarter 2024 earnings. The report highlighted GM’s consistent growth trend, driven by a focus on profitability and disciplined capital allocation. With total revenue growing 8% year over year to $43 billion, GM’s performance was commendable, supported by a strategic go-to-market approach prioritizing profitability and margins.
A look at General Motors Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
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. manufactures and markets new cars and trucks, providing a wide range of features for drivers with special needs, vehicle protection through OnStar, maintenance services, satellite radio, and more. With a Smartkarma Smart Score of 5 in Value, indicating strong value proposition, General Motors is positioned well in terms of its current pricing and potential for growth. While its Dividend score of 2 may not be as high, indicating a moderate dividend outlook, its Growth score of 3 suggests promising prospects for expansion. The Resilience score of 2 hints at some vulnerability but the Momentum score of 4 points towards positive market momentum.
In conclusion, General Motors shows strength in value, backed by a solid foundation as a manufacturer and marketer of vehicles globally. While dividends may not be a strong suit, the company’s growth potential is promising. Although there may be some resilience challenges, the positive momentum indicates a favorable outlook. Investors may find General Motors an interesting proposition for long-term investment given its overall Smartkarma Smart Scores profile.
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.
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