DETROIT — General Motors on Tuesday raised key guidance for 2023 after reporting first-quarter results that topped Wall Street's top- and bottom-line forecasts. Here's how GM did, compared with what Wall Street expected based on average estimates compiled by Refinitiv:
- Adjusted earnings per share: $2.21 vs. $1.73 expected
- Revenue: $39.99 billion vs. $38.96 billion expected
For the full year, GM is raising its adjusted earnings expectations to a range of $11 billion to $13 billion, or $6.35 to $7.35 a share, up from a previous range of $10.5 billion to $12.5 billion, or between $6 and $7 a share. GM also raised expectations for adjusted automotive free cash flow to a range of $5.5 billion and $7.5 billion, up from an earlier forecast of $5 billion to $7 billion.
GM lowered its guidance, however, for net income attributable to stockholders due to $875 million in special charges related to a previously announced employee buyout program during the quarter. The new range is between $8.4 billion and $9.9 billion, down from $8.7 billion to $10.1 billion.
GM said revenue during the first three months of this year was up 11.1% from roughly $36 billion a year earlier. Its net income during the first quarter, however, was down by roughly 18% to $2.3 billion compared to a year earlier.
CFO Paul Jacobson said the company felt confident in raising its adjusted earnings guidance after first-quarter results came in above the company's internal expectations, including continued demand for high-end models. Cost-cutting efforts such as the employee buyout program also impacted results faster than expected, he said.
The employee buyouts, which saw more than 15% of its global executives opt in, were part of GM's plan announced earlier this year to cut $2 billion in structural costs by the end of 2024. Jacobson reiterated that additional cost-savings will come by reducing complexity across its business, prioritizing growth initiatives and cutting other expenses such as marketing.
"All-in-all we're feeling confident about 2023," Jacobson said during a call with reporters.
GM's first-quarter results included adjusted earnings of $3.8 billion, down 6% from a year earlier. The company's net income attributable to stockholders, which excludes some dividend payouts, was down by 18.5% to about $2.4 billion from the first quarter of 2022. In addition to the employee buyout program, GM spent $99 million on buying out Buick dealers during the quarter.
GM CEO Mary Barra in a letter to shareholders Tuesday also highlighted turnarounds in the company's international operations, excluding China, which has experienced significant declines in recent years.
GM's equity income from China was $83 million during the first quarter, off 64.5% from a year earlier. The automaker's other international operations increased earnings by 5.8% to $347 million. North America generated roughly $3.6 billion for the automaker to begin the year, up by 13.8% from the first quarter of 2022.
Jacobson told reporters GM doesn't believe it needs to match or follow recent price cuts on EVs from automakers such as Tesla. He said officials "feel good about where we're priced right now."
The company announced on its earnings call that it would end production of its best-selling and most-affordable Chevy Bolt EVs later this year.
Separately on Tuesday, GM said it plans to invest more than $3 billion with South Korea-based Samsung SDI to build a new battery cell manufacturing plant in the United States that is targeted to begin operations in 2026. A location for the plant has not been decided.
The plant, which is GM's fourth announced battery facility for the U.S., is expected to produce "nickel-rich prismatic and cylindrical cells." The batteries differ from the pouch cells that are used in GM's newest U.S. EVs.
The announcement coincides with a visit to the United States by South Korean President Yoon Suk Yeol.