DEARBORN — For the fourth quarter, General Motors easily outperformed Wall Street’s top and bottom-line projections, and it anticipates another successful year of financial performance in 2023.
In Tuesday’s premarket trade, shares increased by more than 3%.
Fourth-quarter results were slightly better than last year when the automaker reported adjusted earnings per share of $1.35 and revenue of $33.58 billion for the final three months of 2021.
For GM, his full-year 2022 sales were $156.7 billion, net income attributable to shareholders was $9.9 billion, and his adjusted EBIT was his record $14.5 billion. The results hit the high end of the company’s revised EBIT adjustment guidance range.
Nevertheless, automakers are facing cost pressures. GM’s net income fell less than 1% last year, bringing him to $9.9 billion on a 6.3% profit margin. The adjusted margin was 9.2%, down 2.1 percentage points from the prior year.
The strong results and guidance show that the U.S. auto industry is slowly recovering after years of record low inventories and resilient consumer demand that has led automakers such as GM to report record performance. Brought to you when things are getting back to normal.
GM anticipates net income attributable to stockholders of between $8.7 billion and $10.1 billion in 2023, adjusted earnings before interest and taxes of between $10.5 billion and $12.5 billion, and diluted and adjusted EPS of between $6 and $7.
The results would fall short of 2022 earnings but surpass Refinitv’s average analyst estimates, which predicted an EPS of $5.73 this year.
According to GM, the automotive industry will generate between $16 and $20 billion in net cash from operating activities by 2023, and it will generate $5 to $7 billion in free cash flow.
