Common Motors (GM) This fall 2022 outcomes

Mary Barra, CEO, GM on the NYSE, November 17, 2022.

Source: New York SE

DETROIT — General Motors will report its fourth-quarter results before the close on Tuesday. Here’s what Wall Street expects, according to Refinitiv consensus estimates:

• Adjusted earnings per share: $1.69
• Revenue: $40.65 billion

GM in November raised its guidance range for 2022 adjusted earnings to $13.5 billion to $14.5 billion, up from previous guidance of $13 billion to $15 billion. It also increased his Cash flow forecast at $10 billion to $11 billion, up from $7 billion to $9 billion.

While investors will be watching fourth-quarter results for signs of softening consumer demand or earnings dilution, the automaker’s 2023 guidance is expected to take the spotlight.

Goldman Sachs said it expects GM’s guidance to be below consensus, “driven by price and mix and lower financial services earnings.” Refinitiv estimates that the automaker is expecting its full-year 2023 adjusted earnings per share to fall about 20%.

Automakers have posted record results in recent years, while new vehicle supply has been tight and consumer demand has been stable. They’ve expected continued pent-up demand as inventories regulate, hoping to avoid deep discounts or incentives to sell vehicles.

But this scenario is slowly normalizing, leaving new car prices and profits in flux.

In the fourth quarter of 2021, GM reported adjusted earnings per share of $1.35 and revenue of $33.58 billion, beating Wall Street’s EPS estimate of $1.19 per share, which remained but fell short of the estimate of $34.01 billion in revenue, according to Refinitiv.

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