A GMC pickup truck is displayed on the market on loads at a General Motors dealership in Austin, Texas, on Jan. 5, 2023.
Brandon Bell | Getty Images
DETROIT — General Motors is ready to report its fourth-quarter earnings before the bell Tuesday.
Here’s what Wall Street is expecting, in keeping with average estimates compiled by LSEG, formerly often known as Refinitiv.
- Adjusted earnings per share: $1.16
- Revenue: $38.67 billion
Those results would mark a ten.3% decrease in revenue in comparison with a 12 months earlier in addition to a forty five.3% decline in adjusted earnings per share. GM’s 2022 fourth-quarter results included $43.11 billion in revenue, net income attributable to stockholders of $2 billion and adjusted earnings before interest and taxes of $3.8 billion.
Apart from quarterly earnings, investors can be expecting any residual or unexpected costs from the corporate’s recent labor contract, struck last 12 months with the United Auto Employees union, in addition to 2024 guidance.
Wall Street analysts expect a “flattish” forecast from GM in comparison with last 12 months’s earnings. Favorable vehicle pricing, which has resulted in record profits lately, is normalizing. Meanwhile, cost-cutting measures are expected to help in offsetting higher labor costs in consequence of the UAW deal.
In November, GM CEO Mary Barra in an announcement said the corporate is finalizing a budget for 2024 that may “fully offset the incremental costs of our recent labor agreements.”
GM reinstated its 2023 guidance in November to incorporate net income attributable to stockholders of $9.1 billion to $9.7 billion, or EPS of $6.52 to $7.02; adjusted earnings before interest and taxes of $11.7 billion to $12.7 billion, or $7.20 to $7.70 adjusted EPS; and adjusted automotive free money flow of $10.5 billion to $11.5 billion.
The guidance included an estimated $1.1 billion EBIT-adjusted effect from roughly six weeks of U.S. labor strikes in addition to some costs related to an accelerated $10 billion share repurchase program that was announced in November.
Investors also can be taken with any updates regarding GM’s recent electric vehicles in addition to Cruise, GM’s majority-owned autonomous vehicle subsidiary that is currently the topic of several probes following an October accident involving a pedestrian in San Francisco.
Cruise and GM last week released findings of internal investigations into the incident that outlined cultural issues, regulatory ineptitude and poor leadership at the corporate, but found that officials didn’t intentionally deceive or mislead regulators.
The businesses also disclosed Cruise stays under investigation by several entities, including the U.S. Department of Justice and the U.S. Securities and Exchange Commission.
That is breaking news. Please check back for added updates.
— CNBC’s Michael Bloom contributed to this report.