HomeFinancial MarketsGM Shares Surge Following Strong Quarterly Earnings

GM Shares Surge Following Strong Quarterly Earnings

General Motors shares skyrocketed by 9% during early trading on Tuesday after the company reported a surge in profit for the fourth quarter. Profits for the quarter hit $3.8 billion, beating estimates of $3.2 billion. Full year profits hit $14.5 billion, thereby landing at the higher end of an expected profit in the range of $13 billion to $15 billion.

Revenue for the quarter was $43.1 billion compared to an expected $40 billion, while adjusted earnings per share were $2.12, outpacing the estimated $1.69.

“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,” CEO Mary Barra said in her shareholder letter.

The company’s electric vehicle business excelled during the fourth quarter, with the Chevrolet Bolt EV and Bolt EUV hitting record sales figures. GM also proved to be a leader in the truck market, selling 1.1 million full-size pickups, mid-size pickups, and full-size SUVs.

For 2023, General Motors has forecasted earnings before interest and taxes of $10.5 billion to $12.5 billion, while it expects adjusted earnings per tax of $6.00 to $7.00.

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