General Motors Co. (GM) released an optimistic profit report for the fourth quarter that exceeded Wall Street predictions. As a result, GM shares on the New York Stock Exchange saw pre-market gains of approximately 8%, reaching a share price of $38.10.
Looking ahead into 2024, the company foresees net income assigned to shareholders in the range of $9.8 billion to $11.2 billion, compared to the previous year's $10.1 billion. Predicted earnings per share, both reported and adjusted, are anticipated to be anywhere between $8.50 to $9.50. In 2023, GM reported earnings of $7.32 per share, with an adjusted figure of $7.68 per share. For comparison, average estimates from analysts pegged the company's earnings at $7.83 per share for the year.
GM's 2024 guidance also takes into account an estimated $1.45 per share effect from its accelerated share repurchase program, which was launched in November 2023. Additionally, their financial projections for 2024 take into account anticipated capital expenditures of $10.5 billion to $11.5 billion.
Moving on to the company's fourth-quarter results, GM reported a net income loving to shareholders of $2.10 billion, translating to $1.59 per share. This reflects a 5.2% increase from the previous year’s earnings of $2.00 billion, or $1.39 per share. Adjusted earnings came in at $1.24 per share for the same period, in comparison to the previous year's $2.12 per share. Analysts were predicting earnings of $1.16 per share.
When it comes to GM's revenue for the fourth quarter, the figure dropped slightly by 0.3% to $42.98 billion from $43.11 billion the year before. Nevertheless, this still surpassed Wall Street's forecasted revenue of $38.97 billion.
