General Motors (GM) is set to announce its fourth-quarter earnings before the market opens on Tuesday, with expectations of a robust performance. The automotive giant anticipates an adjusted earnings per share (EPS) of $1.89 and revenue totaling $43.93 billion. This marks a significant increase from the previous year's figures, with revenue rising by 2.2% and adjusted EPS soaring by an impressive 52.4%. GM executives plan to discuss these results in detail during an earnings conference call scheduled for 8:30 a.m. ET.
Despite a promising upgrade by Deutsche Bank from "hold" to "buy," GM's stock has remained relatively flat at the start of this year. Wall Street analysts have set their expectations slightly lower, forecasting an adjusted EPS of $1.84 and revenue of $43.606 billion. Nonetheless, GM's actual fourth-quarter results for 2023 included $42.98 billion in revenue, net income attributable to stockholders of $2.1 billion, and adjusted earnings before interest and taxes (EBIT) of $1.76 billion.
Looking ahead, GM has set ambitious targets for 2024, aiming for adjusted EBIT between $13 billion and $15 billion. The company also projects its adjusted EPS to range from $9.50 to $10.50 per share, reflecting an upward revision from its previous guidance of $9 to $10 per share. Similarly, the previous target for adjusted EBIT was between $12.5 billion and $14.5 billion, underscoring GM's confidence in its financial trajectory.
In addition to the forthcoming fourth-quarter earnings report, GM has expressed optimism about its performance in 2025. The company expects its adjusted earnings to remain in a "similar range" to the anticipated results for 2024, signaling sustained momentum in its financial growth.
In 2024, GM emerged as a favored auto stock among Wall Street analysts, with share prices surging by 48% over the course of the year. This remarkable growth underscores investor confidence in GM's strategic initiatives and its ability to navigate an ever-evolving automotive landscape.