General Motors Q4 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy GM?
Source: Benzinga
- GM Earnings Beat: General Motors reported an adjusted EPS of $2.51 for Q4, a 30.4% year-over-year increase, surpassing the analyst estimate of $2.20, although quarterly revenue of $45.287 billion fell short of the $45.804 billion forecast.
- Increased Shareholder Returns: GM's Board approved a 3-cent increase in the quarterly dividend to 18 cents per share and authorized a new $6 billion share repurchase program, reflecting confidence in future cash flows and commitment to shareholders.
- Tesla Stock Surge: Tesla's shares rose in extended trading on Wednesday following the release of its Q4 earnings report, which beat market expectations, indicating strong demand in the electric vehicle market and the company's ongoing profitability.
- Tesla FSD Subscription Numbers: For the first time, Tesla disclosed that it has 1.1 million active Full Self-Driving (FSD) subscribers globally during its Q4 earnings call, with over 70% being upfront purchases, highlighting consumer acceptance and the market potential of this technology.
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Analyst Views on GM
Wall Street analysts forecast GM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GM is 82.06 USD with a low forecast of 48.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
16 Buy
1 Hold
1 Sell
Strong Buy
Current: 85.710
Low
48.00
Averages
82.06
High
100.00
Current: 85.710
Low
48.00
Averages
82.06
High
100.00
About GM
General Motors Company designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. The Company's segments include GMNA, GMI, Cruise and GM Financial. Its GM North America (GMNA) and GM International (GMI) develop, manufacture and/or markets vehicles under the Buick, Cadillac, Chevrolet and GMC brands. The Company provides automotive financing services through its General Motors Financial Company, Inc. (GM Financial) segment. Its Cruise segment is engaged in the development and commercialization of autonomous vehicle technology. Its software-enabled services and subscriptions, including OnStar, its advanced driver-assistance systems (ADAS), including Super Cruise driver assistance technology, and its end-to-end software platform. The Company is also focused on investing in electric vehicles (EVs) and AVs, software-enabled services and subscriptions and new business opportunities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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