General Motors (NYSE:GM) reported a robust first quarter in 2024, with earnings and revenue surpassing Wall Street expectations and the company raising its full-year guidance. The automaker announced an adjusted EPS of $2.62, which was $0.50 higher than the analysts' estimate of $2.12. Revenue for the quarter was also strong at $43.01 billion, exceeding the consensus estimate of $40.67 billion and marking an 8% increase YoY.
Investors reacted positively to the news, with GM shares climbing 3.4% on the back of the earnings beat, revenue outperformance, and upwardly revised guidance. The company's success was attributed to consistent revenue growth over the past two years, with a CAGR of more than 15%, and a significant 21% YoY increase in retail deliveries for its EV portfolio.
CEO Mary Barra highlighted the company's achievements, noting, "During the first quarter, we grew total company revenue by 8% year-over-year to $43 billion. We delivered double-digit EBIT margins in North America, pricing has been steady, and we gained retail market share with incentives much lower than the industry average."
Looking ahead, General Motors has raised its full-year 2024 EPS guidance to a range of $9.00-$10.00, up from the previous forecast of $8.50-$9.50. This new guidance surpasses the analysts' consensus of $9.08. The company's capital spending is expected to be between $10.5 billion and $11.5 billion, including investments in battery cell manufacturing joint ventures.
Barra expressed optimism about the company's self-driving car unit, stating, "We’re also making progress at Cruise. The team is back on the road in Phoenix updating mapping and gathering more road information. This is a critical step for validating our improved self-driving system and building upon the more than 5 million driverless miles we logged before our pause."
GM's strategy to leverage its ICE portfolio while growing its EV business and advancing software-defined vehicle capabilities appears to be paying off. The company's focus on profitability and cash flow, combined with its ambitious product launches and EV momentum, positions it well for continued success in the automotive industry.