On January 30, 2024, General Motors Co (GM, Financial) released its 8-K filing, detailing its financial performance for the fourth quarter and full year of 2023. The company, which emerged from the bankruptcy of General Motors Corp. in July 2009, has regained its market share leader crown in the U.S. in 2022. GM operates under four segments: GM North America, GM International, Cruise, and GM Financial, with a significant stake in the Cruise autonomous vehicle arm.
Financial Performance Summary
GM reported a fourth-quarter revenue of $43.0 billion, a slight decrease of 0.3% from the same period last year. However, the full-year revenue saw a healthy increase of 9.6% to $171.8 billion. Net income attributable to stockholders for the quarter was $2.1 billion, up 5.2% year-over-year, while the full-year net income grew by 1.9% to $10.1 billion. Despite these gains, EBIT-adjusted for the quarter fell sharply by 53.8% to $1.8 billion, and the full-year EBIT-adjusted also saw a decrease of 14.6% to $12.4 billion.
The diluted earnings per share (EPS) for Q4 increased by 14.4% to $1.59, and the full-year EPS also rose by 19.4% to $7.32. However, the adjusted automotive free cash flow for the quarter was significantly lower, down by 69.9%, while the full-year figure improved by 11.5%.
Challenges and Outlook
GM's performance reflects resilience in the face of industry challenges, including supply chain disruptions and the transition to electric vehicles. The company's EBIT-adjusted margin decline indicates pressure on profitability, which is a critical concern for investors. The significant drop in Q4's adjusted automotive free cash flow also highlights the volatility in the company's cash-generating ability.
For 2024, GM has provided guidance for a year of strong financial performance, with net income attributable to stockholders expected to be between $9.8 billion and $11.2 billion, and EBIT-adjusted projected to be between $12.0 billion and $14.0 billion. The company anticipates automotive operating cash flow to be in the range of $18.0 billion to $21.0 billion, with adjusted automotive free cash flow between $8.0 billion and $10.0 billion. The EPS-diluted is estimated to be between $8.50 and $9.50, factoring in the impact of the company's accelerated share repurchase program.
Investor and Analyst Conference Call
GM Chair and CEO Mary Barra and GM Chief Financial Officer Paul Jacobson will host a conference call to discuss these results and provide further insights into the company's strategies and expectations for the coming year.
General Motors Co's performance in 2023, despite a challenging environment, demonstrates the company's ability to navigate market fluctuations and maintain a strong financial position. Investors and potential GuruFocus.com members can find more detailed information and analysis on GM's financials and future outlook on the GuruFocus website.
Explore the complete 8-K earnings release (here) from General Motors Co for further details.
