GM Stock Jumps as Profit, Sales, and Guidance Beat Estimates

General Motors (GM) shares jumped over 6% in intraday trading Tuesday after the Big Three automaker posted better-than-expected results for the fourth quarter and its full-year guidance beat forecasts.

GM reported fourth quarter earnings per share (EPS) of $1.24 on revenue of $42.98 billion, down from EPS of $2.12 on revenue of $43.1 billion in the year-ago quarter. For 2023, the company reported EPS of $7.68, with revenue up 9.6% from 2022 to $171.84 billion. All were above estimates. The full-year gains came despite a six-week strike by the United Auto Workers union that cost the company $1.1 billion.

CEO Mary Barra wrote in a note to shareholders that GM sold more vehicles in the U.S. last year than any of its rivals, and sales of all of its brands rose.

She added that looking forward, the company’s priorities are to maximize its internal combustion engine (ICE) lineup with new models, grow its electric vehicle (EV) business profitably, deliver strong margins and cash flow, and refocus and relaunch its autonomous vehicle unit, Cruise.

GM shut down testing of Cruise in October after its self-driving cars were involved in two accidents in California, prompting state and federal investigations. The next month, co-founder and CEO Kyle Vogt stepped down. GM said it plans to spend about $1 billion less on Cruise this year after investing some $2.7 billion in 2023. 

GM noted that it lost $1.7 billion on EVs last year, and Barra said that while the pace of EV sales has slowed, the company believes its U.S. portfolio “will become variable profit positive in the second half of 2024.” 

GM said it anticipates full-year profit of $8.50 to $9.50 per share, above forecasts. 

The news sent shares of General Motors up 6.9% to $37.83 per share as of about noon ET Tuesday and into positive territory for the past year.