GM Stock Accelerates After Earnings. Here's Why
General Motors beat expectations for the first quarter and raised its outlook for the year.


General Motors (GM) stock rose more than 4% out of the gate Tuesday after the company disclosed higher-than-expected earnings and revenue for its first quarter and raised its full-year outlook.
In the three months ended March 31, the automaker reported revenue of $43 billion, up 7.6% from the year-ago period. Earnings per share (EPS) jumped 18.6% year-over-year to $2.62.
The results exceeded analysts' expectations for revenue of $41.9 billion and EPS of $2.15, according to Yahoo Finance.

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As a result of the strong start to the year, GM raised its outlook for 2024. The company now expects net income attributable to stockholders in the range of $10.1 billion to $11.5 billion, adjusted automotive free cash flow (FCF) in the range of $8.5 billion to $10.5 billion, and EPS in the range of $9 to $10.
General Motors previously guided for net income attributable to stockholders in the range of $9.8 billion to $11.2 billion, adjusted automotive FCF in the range of $8 billion to $10 billion, and earnings per share in the range of $8.50 to $9.50.
"Globally, our team is leaning into every opportunity with a focus on profitability to build on our strong start to 2024," General Motors CEO Mary Barra said in a letter to shareholders. "As we continue to strengthen our ICE portfolio, scale EVs and reinvest in the business, we are very focused on capital efficiency, enhancing profitability and free cash flow, and we will continue to take steps to create shareholder value."
Analysts see more upside for GM
Analysts were already bullish on the consumer discretionary stock ahead of earnings. According to S&P Global Market Intelligence, the consensus analyst target price for GM stock is $53.03, representing an upside of more than 16% to current levels. Meanwhile, the consensus recommendation is a Buy.
In an April 21 note to clients, global financial service firm UBS, which has a Buy rating and $56 price target on GM, said it expected General Motors to beat earnings estimates. "We believe the stock is a consensus long," the team wrote. "The bigger question is: Will GM raise guidance?"
Indeed it did, and GM stock is flying high as a result.
Looking ahead, fellow automakers Tesla (TSLA) and Ford Motor (F) will also make an appearance on this week's earnings calendar. Tesla will report after Tuesday's close while Ford will disclose its results Wednesday evening.
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Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
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