GM Earnings preview: More sales, more profit and a spotlight on EVs

General Motors opts to maintain EV prices as competition with Ford, Tesla revs up

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·Senior Reporter

Tue, April 25, 2023, 1:19 AM GMT+9·3 min read

General Motors (GM) will report first quarter earnings on Tuesday morning, and analysts are anticipating that the automaker will keep the good times rolling.

In its fourth quarter earnings statement, GM reported record revenue, beat EBIT projections, and hit the high end of its full-year 2022 profit guidance. Now for its first quarter report, analysts are expecting a slight dip in revenue to $39.23 billion from the last quarter, though that figure would be a 16.8% jump from a year ago.

On the profitability front, Wall Street consensus has GM reporting adjusted EPS of $1.72, with adjusted net income coming in $2.35 billion, an 18.3% gain versus the same quarter last year.

For 2023, GM is expected to at least reiterate its adjusted EBIT forecast of of $10.5 billion-$12.5 billion, and adjusted EPS (diluted) of $6.00-$7.00. “We expect that our momentum will help us deliver strong results once again in 2023,” GM CEO Mary Barra said last quarter.

More good GM news: Earlier this month the company disclosed first quarter US deliveries rose 18% to 603,208 vehicles in the U.S., with the automaker growing its US market share by an estimated 1.5%, the largest of any company in the industry, GM said.

GM also reported record electric vehicle deliveries of 20,670, though most of those were for the Chevrolet Bolt EV and EUV—GM only delivered two Hummer EV pickups and 968 Cadillac LYRIQ EVs. Analysts and investors will be keen to hear more about GM’s EV ramp up; GM is expected to launch three more EVs - the Chevrolet Equinox, Blazer, Silverado EV pickup.

With Tesla’s (TSLA) price cuts front and center on the EV landscape, Wall Street will also be looking to hear for any price updates on GM’s EV offerings. So far, GM has said it will not engage in any EV price cuts this year.

"Right now based on the interest we're seeing, the pricing we put out was very appropriate," Barra said on the earnings call last quarter. GM is pricing the Equinox EV at around $30,000, with the Blazer EV starting at $47,595 and the Silverado EV work truck at $39,900.