GM +2.87 to 38.26 after posting strong Q4 results and issuing 2024 guidance way above estimates. GM is one of the cheapest stocks in the S&P500 with a forward PE of 4.2 based on the midpoint of guidance. I own a small position. At the very least it should be a good trader in the coming year and I'll be trading around my core position.
briefing -
General Motors beats by $0.08, beats on revs; guides FY24 EPS above consensus (35.39 ) :
Reports Q4 (Dec) earnings of $1.24 per share, excluding non-recurring items, $0.08 better than the FactSet Consensus of $1.16; revenues fell 0.3% year/year to $42.98 bln vs the $38.81 bln FactSet Consensus.
EBIT-adjusted of $1.76 bln.
Automotive operating cash flow of $1.3 bln.
Co issues upside guidance for FY24, sees EPS of $8.50-$9.50 vs. $7.75 FactSet Consensus. Sees EBIT-adj of $12-$14 bln and Adj. Auto free cash flow of $8-$10 bln. Expects Market share gains primarily from higher EV penetration driving revenue growth.
General Motors comments from Q4 conference call (35.39 ) :
Wants to reduce shares outstanding to fewer than 1 bln.
EV production will be guided by customer demand.
Pace of EV growth has slowed, creating some uncertainty.
Will build to demand, encouraged by third party EV forecasts.
Chevy Blazer and Cadillac LYRIQ will qualify for full $7500 consumer credit.
Seeing some cost savings on simplicity. Expecting cost savings from model simplification to be about $200 mln.
Expecting 2024 capital spending of $10.5-$11.5 bln.
Have begun to implement changes to Cruise.
Spending on Cruise will be down "considerably" this year.
Working on new timeline for Cruise.
Plans to bring plug-in hybrids to select vehicles in North America; remains committed to eliminating tail pipe emissions from light duty vehicles by 2035.
Seeing an improvement in Cell costs driven by significantly lower raw materials prices.
Mgmt says GM is well positioned for a year of strong financial performance.
Expect 2024 sales of 16 million units.
