General Motors Posts Mixed Q4 Results

General Motors Co. (NYSE: GM) reported mixed Q4 results, topping earnings estimates but falling short of revenues expectations. Following the results, shares of the GM gained 1.05% during extended trading hours on February 1.

Q4 Numbers

Q4 adjusted earnings of $1.35 per share declined 30% year-over-year, but surpassed analysts’ expectations of $1.19 per share. The company reported earnings of $1.93 per share for the prior-year period.

Meanwhile, revenues declined 10.4% year-over-year to $33.58 billion and fell short of consensus estimates of $34.01 billion.

FY2022 Outlook

Based on expectations of continuous steady demand for new vehicles coupled with no significant economic or supply chain challenges, the company issued financial guidance for FY2022.

The company forecast adjusted earnings in the range of $6.25 to $7.25 per share, while the consensus estimate is pegged at $6.92 per share.  

Additionally, net income is forecast to be in the range of $9.4 billion to $10.8 billion, while adjusted operating income is expected to be in the range of $13.0 billion to $15.0 billion.

Management Weighs In

GM CEO, Mary Barra, commented, “With an improving outlook for semiconductors in the U.S. and China, we expect our 2022 results will remain strong. In fact, we expect our EBIT-adjusted earnings to remain at or near record levels in the range of $13 billion—$15 billion, all while investing more year over year in our growth businesses like Cruise, BrightDrop and our rapidly accelerating portfolio of electric vehicles.”

Aiming to be the top EV stocks, Barra added, “By going all-in to build an EV and AV ecosystem, we are expanding the scale, scope and profitability of our business, and extending our transportation leadership into the future.”

Wall Street’s Take

Overall, the stock has a Strong Buy consensus rating based on 10 Buys and 2 Holds. The average General Motors stock price prediction of $78 implies 44.26% upside potential to current levels.

Smart Score 

GM scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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