- General Motors (GM) predicts a net income of $9.1 billion to $9.7 billion for the fiscal year (FY).
- The company’s adjusted earnings per share (EPS) are expected to be between $7.20 and $7.70.
- GM anticipates an adjusted auto free cash flow of $10.5 billion to $11.5 billion.
- The adjusted Ebit (earnings before interest and taxes) is projected to be between $11.7 billion and $12.7 billion.
- GM expects the automotive net cash provided by operating activities to be between $19.5 billion and $21.0 billion.
- The net income attributable to stockholders for 2023 is expected to be between $9.1 billion and $9.7 billion, slightly less than the previous outlook of $9.3 billion to $10.7 billion.
- For 2023, GM anticipates an EBIT-adjusted of $11.7 billion to $12.7 billion, a decrease from the previous outlook of $12.0 billion to $14.0 billion.
- The 2023 EPS-diluted-adjusted is expected to be in the $7.20 to $7.70 range, including the estimated impact of the ASR (Accelerated Share Repurchase).
- GM projects the net automotive cash provided by operating activities for 2023 to be between $19.5 billion and $21.0 billion, a slight increase from the previous outlook of $17.4 billion to $20.4 billion.
- The adjusted automotive free cash flow for 2023 is expected to be between $10.5 billion and $11.5 billion, a significant rise from the previous outlook of $7.0 billion to $9.0 billion.
- The company plans to reduce its full-year 2023 capital spending to $11.0 billion to $11.5 billion, reflecting the previously announced retiming of certain product programs and more capital-efficient investment.
- GM has canceled its $6.0 billion revolving credit facility from October and plans to set up a new 364-day $3.0 billion committed credit facility with the banks executing the ASR acting as lenders.
- GM intends to increase its common stock dividend by 3 cents per quarter to 12 cents starting in 2024.
- CEO Mary Barra expressed disappointment with the production of Ultium-based Electric Vehicles (EVs) in 2023 but expects significantly higher production in 2024.
- GM also projects substantially lower spending at Cruise, its self-driving subsidiary, in 2024 compared to 2023.
General Motors on Smartkarma
General Motors has been receiving positive analyst coverage from Smartkarma, an independent investment research network. Baptista Research, a top independent analyst, published a research report on General Motors recently. The report titled ‘General Motors Company: A Story Of Sales in Premium Variants! – Key Drivers’ gave a ‘Hold’ rating to the company. According to the report, General Motors exceeded Wall Street expectations in terms of revenue and earnings, thanks to their pricing and incentive discipline. The report also revised the target price for the company.
The research report from Baptista Research is one of many analyst reports on General Motors on Smartkarma. Other top independent analysts have also published research on the company, offering insights into the future of the company. All of these reports are available on the Smartkarma platform.
A look at General Motors Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
General Motors is a global automotive company that produces and markets new cars and trucks. It is renowned for providing features for special needs drivers, OnStar vehicle protection, service and parts, accessories, maintenance, XM satellite radio and features for commercial owners. According to Smartkarma Smart Scores, General Motors has a long-term outlook that is strong in value and growth, but lacks resilience and momentum. Despite this, the company’s solid value and growth scores suggest that it is well-positioned to succeed in the long term.
General Motors continues to offer its vehicles and services around the world. Its value score of 5 is a testament to its strong performance, while its dividend score of 1 suggests that it is not expected to pay out a dividend in the near future. Its growth score of 5 is indicative of its potential for long-term growth, while its resilience and momentum scores of 2 and 3, respectively, indicate that it may not be as well-positioned in the short-term as its value and growth scores suggest.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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