General Motors (GM) posted stronger-than-expected fourth quarter earnings Tuesday, while issuing a robust 2023 outlook, following a year in which the carmaker overtook Toyota as the country's biggest seller as it continues to rely on combustion-engine vehicles amid the industry's broader rush to electrification.
General Motors said adjusted earnings for the three months ending in December came in at $2.12 per share, up 57% from the same period last year and well ahead of the Street consensus of $1.69 per share. Group revenues were pegged at $43.1 billion, GM said, a 28.3% increase from last year that topped analysts' consensus of $40.65 billion tally.
GM delivered 623,261 cars over the three months ending in December, a 41% increase from last year and a tally that reclaimed the full-year U.S. lead over Toyota (TM) - which bested both Ford (F) and GM in total 2021 sales for the first time since 1931.
Looking into the coming year, General Motors said it sees adjusted net income in the region of $10.5 billion to $12.5 billion, well ahead of analysts' estimates, with earnings in the range of $6 to $7 per share, compared to the Refinitiv forecast of around $5.73 per share.
"We expect that our momentum will help us deliver strong results once again in 2023," said CEO Mary Barra. "GM led the U.S. industry in total sales and delivered the largest year-over-year increase in market share of any OEM, thanks to strong demand for our products and improved supply chain conditions."
"Our EVs are transformational in so many ways. We’re earning new customers," she added. "Our investments are creating new jobs. We’re moving closer to a world with zero crashes, zero emissions and zero congestion, and we believe our R&D, supply chain, manufacturing scale and distribution network will unlock the profitability of EVs."
GM shares were marked 7.4% higher in early Tuesday trading immediately following the earnings release to change hands at $38.97 each, trimming the stock's six-month decline to just 1.3%.
"With this exceptional performance and guide from GM, we believe this was a strong statement to the Street expressing that demand worries and supply shortages are a thing of the past and to focus on the massive opportunity ahead as GM continues chipping away at its transformational story," said Wedbush analyst Dan Ives, who carries an 'outperform' rating with a $46 price target on the stock.
"We view this as a renaissance of EV growth in the 313 area code for Barra & Co. with this morning a key step in the right direction for GM," he added.
Earlier this week, GM's main U.S. rival, Ford Motor F, said it would boost production of its flagship EV, the Mustang Mach-E, while cutting overall car and battery prices as it looks to close the gap on market leader Tesla TSLA over the coming years.
