General Motors exceeded Wall Street’s expectations in the first quarter of 2024, prompting the company to raise its guidance for the year. The automaker now expects adjusted earnings of $12.5 billion to $14.5 billion, up from the previous range of $12 billion to $14 billion. Net income attributable to stockholders is projected to be between $10.1 billion and $11.5 billion, an increase from $9.8 billion to $11.2 billion. GM also raised expectations for adjusted automotive free cash flow to a range of $8.5 billion to $10.5 billion.
In the first quarter, GM reported adjusted earnings per share of $2.62, exceeding the $2.15 expected by analysts. Revenue for the quarter was $43.01 billion, higher than the anticipated $41.92 billion. The company’s net income was up by 26% from the previous year, reaching $2.95 billion. Net income attributable to stockholders was up by 24.4% to $2.98 billion, or $2.56 per share. GM’s adjusted earnings before interest and taxes were $3.87 billion, or $2.62 per share during the first quarter.
GM’s North American operations, driven by strong truck sales, contributed significantly to the company’s first-quarter performance. The division saw adjusted earnings of $3.84 billion, up 7.4% from the previous year. Despite losses in China and other international markets, steady vehicle pricing and increased retail sales in North America helped GM achieve a 10.6% adjusted profit margin in the region for the quarter, exceeding its previously announced range of 8% to 10% for the year.
The automaker’s financing arm reported adjusted earnings of $737 million in the first quarter, slightly lower than the previous year. GM’s Chief Financial Officer, Paul Jacobson, stated that vehicle prices were relatively stable during the quarter, with pricing not declining as much as the company had anticipated for the year. Sales of profitable pickups remained strong, while production of all-electric vehicles continued to increase after production bottlenecks were addressed, particularly in relation to battery modules.
GM CEO Mary Barra emphasized the company’s focus on capital efficiency, profitability, and free cash flow to create shareholder value. Acknowledging the strength of the North American market, GM’s vehicle inventory levels in the U.S. increased to a 63-day supply by the end of the first quarter, above the initial guidance range of 50 to 60 days. The company remains vigilant about monitoring inventory levels but is optimistic about the spring and summer selling season, despite upcoming factory shutdowns for retooling.
As GM continues to strengthen its internal combustion engine portfolio and scale up electric vehicles, the company aims to produce between 200,000 and 300,000 EVs in 2024. Despite ongoing challenges in the global automotive industry, GM’s strong performance in the first quarter and optimistic outlook for the year demonstrate its commitment to strategic growth and sustainable profitability.
