General Motors (GM) reported first-quarter 2024 adjusted earnings of $2.62 per share, which surpassed the Zacks Consensus Estimate of $2.08. The bottom line also increased from the year-ago quarter’s level of $2.21. Solid results from the GMNA segment led to the outperformance. Revenues of $43.01 billion beat the Zacks Consensus Estimate of $41.28 billion and increased from $39.9 billion recorded in the year-ago period.
The U.S. auto giant recorded adjusted earnings before interest and taxes (EBIT) of $3.87 billion, slightly higher than $3.8 billion in the prior-year quarter. The automaker’s share in the GM market was 8.1% in the reported quarter compared with 8.7% in the year-ago quarter.
Segmental Performance
GM North America (“GMNA”) generated net revenues of $36.1 billion, up from $32.9 billion recorded in the corresponding period of 2023. The figure also outpaced our model projection of $33.5 billion on higher-than-expected deliveries. Wholesale vehicle sales in the GMNA unit totaled 792,000 units, up from 723,000 units reported in the year-ago quarter. The figure also surpassed our estimate of 718,000 units. The segment’s operating profit totalled $3.84 billion, up from $3.57 billion recorded in the year-earlier period. The metric also exceeded our estimate of $2.75 billion.
GM International’s (“GMI”) net revenues in the reported quarter amounted to $3.08 billion, down from the year-ago quarter’s $3.72 billion. The metric also missed our estimate of $3.96 billion due to lower-than-expected deliveries. The segment’s wholesale vehicle sales of 104,000 units decreased from 141,000 units in the year-ago quarter and also missed our projection of 148,000 units. GMI reported an operating loss of $10 million against a profit of $347 million generated in the year-ago period due to low equity income. Our estimate was an operating profit of $464.7 million, Zacks Equity Research cited today.
GM Financial generated net revenues of $3.81 billion in the quarter, up from $3.34 billion recorded in the year-ago period and ahead of our prediction of $3.48 billion. The segment recorded an EBIT-adjusted operating profit of $737 million, down from $771 million recorded in the year-ago period. The metric surpassed our prediction of $691 million.
GM Cruise recorded net revenues of $25 million in the fourth quarter, flat year over year. The metric came in line with our projection as well. The segment posted an operating loss of $442 million, narrower than a loss of $561 million reported in the prior-year quarter. The reported loss was, however, wider than our estimate of a loss of $358 million.
Financial Position
General Motors had cash and cash equivalents of $17.64 billion as of Mar 31, 2024. The long-term automotive debt at the end of the quarter was $15.9 billion. Net automotive cash provided by operating activities amounted to $3.6 billion during the quarter under review. The company recorded an adjusted automotive free cash flow of $1.09 billion in first-quarter 2024, significantly improving from negative $132 recorded in the year-ago period.
GM declared its second-quarter dividend of 12 cents per share. The dividend will be paid on Jun 20, 2024, to shareholders of record as of Jun 7, 2024.
Revised 2024 Guidance
For full-year 2024, GM now expects adjusted EBIT in the range of $12.5-$14.5 billion, up from $12-$14 billion guided earlier. Adjusted EPS is anticipated in the range of $9-$10, up from $8.50-$9.50, guided earlier. Adjusted automotive free cash flow is expected in the band of $8.5-$10.5 billion, higher than the prior forecast of $8-$10 billion. Capex is predicted to be in the $10.5-$11.5 billion range, up from the previous guidance of $10-$11 billion.
