General Motors Raises FY Forecast After Q1 Outperformance
General Motors (GM:US) reported better-than-expected Q1 results to send its shares higher in pre-market Tuesday trading.
The company earned $2.21 per share on sales that came close to $40 billion. This resulted in a Q1 outperformance as Street was expecting EPS of $1.72 on revenue of $39.24 billion.
The North American business generated $3.8 billion in adjusted Ebit from the sale of 723,000 cars. On the other hand, International business operations brought $347 million in Q1 revenue by selling 141,000 units. Overall, GM said it sold 864,000 cars in the first quarter.
The strong Q1 numbers prompted the company to lift its full-year forecast so GM now expects to earn between $6.35 and $7.35 per share in 2023, up from the prior forecast of $6 to $7.
The FY adjusted Ebit outlook is bumped by $500 million to $12 billion while net income is expected in the range of $8.4 to $9.9 billion, narrowed than the $8.7 to $10.1 billion previously expected.
The company’s CFO Paul Jacobson told Yahoo Finance that the demand remains robust.
He also said that the company plans to double its electric vehicle (EV) production in the second half of this year. For the first half of 2023, GM plans to produce 50,000 EVs.
Congress members Ro Khanna and Daniel Goldman were both buying the GM stock in recent months with the latter reporting a $15,000 - $50,000 buy trade on January 31, when shares closed at $39.32.
GM stock was exchanging hands for around $34 apiece on Tuesday.
