General Motors Tops Earnings Estimates, Guidance Raised
General Motors (GM) reported strong Q1 earnings, surpassing revenue, adjusted EBIT, and EPS estimates. The company also raised its guidance for FY24, with a projected profit of $9 to $10 per share, up from the previous outlook of $8.50 to $9.50 per share. Adjusted pre-tax profit is now expected to range between $12.5 billion to $14.5 billion, exceeding the initial estimate of $12 billion to $14 billion.
Positive Analyst Reactions
Analysts were impressed with GM’s performance, with UBS reiterating a Buy rating and increasing its price target to $58. Mizuho raised its price target to $52 from $48, citing the company’s leadership position in the SUV and pickup truck markets. Wedbush Securities maintained its Buy rating and boosted the price target to $55.
Company Focus on Profitability and Customer Satisfaction
During the earnings call, GM CEO Mary Barra emphasized the company’s focus on generating free cash flow through profitability and capital discipline. She stressed the importance of minimizing costs while maintaining a customer-centric approach.
Share Price Movement
Despite the positive earnings report, shares of GM slipped 0.25% in Wednesday morning trading. However, this follows a brisk rally on Tuesday.
Conclusion
The strong Q1 earnings and increased guidance have boosted investor sentiment for General Motors. Analysts believe that the company is well-positioned to navigate the shift towards electric vehicles while balancing its traditional ICE business. The company’s focus on profitability and customer satisfaction is expected to contribute to its continued success.
