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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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.
Related Content
-
Small Businesses Are Racing to Use AIThe Kiplinger Letter Spurred on by competitive pressures, small businesses are racing to adopt AI. A recent snapshot shows the technology’s day-to-day uses.
-
The Me-First Rule of Retirement SpendingFollow the 'Me-First" rule and you won't have to worry about running out of money when the stock market goes south.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.
-
From Mortgages to Taxes to Estates: How to Prepare for Falling Interest RatesAs speculation grows that the Federal Reserve will soon start lowering interest rates, now is a good time to review your financial plans for housing, estate, taxes, investing and retirement to make the most of potential changes.
-
This Is How Lottery Winners Build Lasting Legacies, From a Financial ProfessionalWinning a massive lottery jackpot, like the recent $1.4 billion Powerball, requires seeking immediate legal and financial counsel, protecting your identity and winnings and planning your legacy.
-
S&P 500 Slips Ahead of Fed Week: Stock Market TodayAll eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
September Fed Meeting: Live Updates and CommentaryThe September Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. will do about interest rates.
-
I'm an Investment Strategist: This Is How the Fed's Next Rate Move Could Impact Your WalletInterest rate cuts might be coming, which could affect everything from your credit card debt to your mortgage. It's smart to prepare now — here's how.
-
I'm a Retirement Planner: These Are Three Common Tax Mistakes You Could Be Making With Your InvestmentsDon't pay more tax on your investments than you need to. You can keep more money in your pocket (or for retirement) by avoiding these three common mistakes.
-
Want to Shave 10 Hours Off Your Workweek? A Startup Expert Shows How AI Can HelpArtificial intelligence is overhauling how companies operate, freeing up entrepreneurs and their workers to skip the menial stuff and get down to business.
