GM Earnings preview: More sales, more profit and a spotlight on EVs
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General Motors (GM) will report first quarter earnings on Tuesday morning, and analysts are anticipating that the automaker will keep the good times rolling.
In its fourth quarter earnings statement, GM reported record revenue, beat EBIT projections, and hit the high end of its full-year 2022 profit guidance. Now for its first quarter report, analysts are expecting a slight dip in revenue to $39.23 billion from the last quarter, though that figure would be a 16.8% jump from a year ago.
On the profitability front, Wall Street consensus has GM reporting adjusted EPS of $1.72, with adjusted net income coming in at $2.35 billion, an 18.3% gain versus the same quarter last year.
For 2023, GM is expected to at least reiterate its adjusted EBIT forecast of $10.5 billion-$12.5 billion, and adjusted EPS (diluted) of $6.00-$7.00. “We expect that our momentum will help us deliver strong results once again in 2023,” GM CEO Mary Barra said last quarter.
More good GM news: Earlier this month the company disclosed first quarter US deliveries rose 18% to 603,208 vehicles, with the automaker growing its US market share by an estimated 1.5%, the largest of any company in the industry, GM said.
GM also reported record electric vehicle deliveries of 20,670, though most of those were for the Chevrolet Bolt EV and EUV — GM only delivered two Hummer EV pickups and 968 Cadillac LYRIQ EVs. Analysts and investors will be keen to hear more about GM’s EV ramp-up; GM is expected to launch three more EVs — the Chevrolet Equinox, Blazer, and Silverado EV pickup.
With Tesla’s (TSLA) price cuts front and center in the EV landscape, Wall Street will also be looking to hear for any price updates on GM’s EV offerings. So far, GM has said it will not engage in any EV price cuts this year.
"Right now based on the interest we're seeing, the pricing we put out was very appropriate," Barra said on the earnings call last quarter. GM is pricing the Equinox EV at around $30,000, with the Blazer EV starting at $47,595, and the Silverado EV work truck at $39,900.
On the operations front, investors will also be looking to hear an update on GM’s corporate headcount. Though the automaker says it will not engage in any layoffs, it did initiate a voluntary buyout program for US salaried workers in Q1 and is expected to take a $1.5 billion charge as a result. GM said it will extract $2 billion in savings from the program; so far 5,000 employees had opted into the program, GM CFO Paul Jacobson said at a media gathering earlier this month.
Ford, meanwhile, has said it would lay off 3,800 workers in Europe as part of its cost-cutting plan, and Stellantis idled its Jeep Cherokee plant in Belvidere, meaning 1,350 factory workers were permanently furloughed in March of this year.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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