General Motors (GM) shares jumped early Tuesday as the automaker reported profit jumped in the fourth quarter, driven again by record revenue and strong demand.
For the full-year, the company reported profits of $14.5 billion, near the high end of its forecast, amid what CEO Mary Barra called "strong customer demand" in a letter to shareholders.
For the quarter, GM reported:
Revenue: $43.1 billion vs. $40 billion expected
Adjusted EPS: $2.12 vs. $1.69 expected
On the profitability front, GM reported adjusted EBIT (earnings before interest and taxes) of $3.8 billion, beating estimates of $3.2 billion. GM also reported full-year adjusted EBIT of $14.5 billion, on the higher end of its prior guidance of $13 billion to $15 billion.
"GM led the U.S. industry in total sales and delivered the largest year-over-year increase in market share of any OEM, thanks to strong demand for our products and improved supply chain conditions," Barra said in her shareholder letter.
GM shares were up as much as 9% in early trading Tuesday.
On the EV front, GM said the Chevrolet Bolt EV and Bolt EUV saw record sales for 2022, which demonstrated the "importance of affordable EVs in our portfolio." Cheap EVs will be at the forefront in 2023, with rivals Tesla and Ford cutting prices for certain EV models this year alone.
GM also reported it is the number one truck leader in the market, selling 1.1 million full-size pickups, mid-size pickups, and full-size SUVs.
For 2023, GM is forecasting adjusted EBIT of $10.5 billion-$12.5 billion, and adjusted EPS of $6.00-$7.00.
"We expect that our momentum will help us deliver strong results once again in 2023," Barra said.
GM also reported it has taken a stake in Lithium Americas worth $650 million to develop the largest known lithium mine in the U.S., located in Nevada. GM says the amount of lithium extracted and processed there will support 1 million EVs a year.
0 Comments