General Motors (GM, Financial) has decided to withhold its financial guidance and pause its planned $4 billion share buyback program. This decision comes in response to the uncertainty brought about by tariffs imposed under President Trump's administration. GM's Chief Financial Officer, Paul Jacobson, highlighted that the company's initial guidance did not account for the tariffs, making previous predictions unreliable. The company plans to provide updated information once more clarity on the tariff situation is available.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 26 analysts, the average target price for General Motors Co (GM, Financial) is $54.65 with a high estimate of $105.00 and a low estimate of $34.00. The average target implies an upside of 15.68% from the current price of $47.24. More detailed estimate data can be found on the General Motors Co (GM) Forecast page.
Based on the consensus recommendation from 30 brokerage firms, General Motors Co's (GM, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for General Motors Co (GM, Financial) in one year is $57.38, suggesting a upside of 21.46% from the current price of $47.24. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the General Motors Co (GM) Summary page.
GM Key Business Developments
Release Date: January 28, 2025
- Full Year Revenue: Increased by 9% to $187 billion.
- EBIT-Adjusted: $14.9 billion for the full year, at the high end of guidance.
- EPS Diluted Adjusted: $10.60, up 38% year-over-year.
- Adjusted Automotive Free Cash Flow: $14 billion for the full year.
- Fourth Quarter Revenue: $48 billion, up 11% year-over-year.
- Fourth Quarter EBIT-Adjusted: $2.5 billion with 5.3% EBIT-adjusted margins.
- Fourth Quarter EPS Diluted Adjusted: $1.92.
- North America EBIT-Adjusted Margin: 9.2% for the full year.
- EV Production and Wholesale: 189,000 vehicles in North America for 2024.
- Market Share: US market share increased by 30 basis points to 16.5% for the full year.
- GM Financial EBT-Adjusted: $3.0 billion for the full year.
- Share Count: Ended the year with 995 million shares outstanding.
- Profit-Sharing Payout: More than $640 million, up to $14,500 per person for US hourly employees.
- 2025 Guidance - EBIT-Adjusted: $13.7 billion to $15.7 billion.
- 2025 Guidance - EPS Diluted Adjusted: $11 to $12 per share.
- 2025 Guidance - Adjusted Automotive Free Cash Flow: $11 billion to $13 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- General Motors Co (GM, Financial) achieved a 9% increase in full-year revenue, reaching $187 billion.
- The company doubled its EV market share in North America, producing and wholesaling 189,000 vehicles.
- GM reported record EBIT-adjusted, adjusted automotive free cash flow, and EPS diluted adjusted.
- The company successfully reduced EV dealer inventory from 100 days to 70 days by year-end.
- GM's Super Cruise technology is expanding, with plans to double the equipped fleet size in 2025, aiming for $2 billion in annual revenue from subscriptions within five years.
Negative Points
- GM faces challenges in China, requiring restructuring initiatives to improve profitability.
- The company stopped funding robotaxi development at Cruise, leading to a $500 million restructuring charge.
- Higher warranty costs, including a 100% increase in repair costs since 2018, are impacting profitability.
- GM anticipates a decline in North American pricing by 1% to 1.5% in 2025 due to potential higher incentives.
- The company is navigating uncertainty around public policy, trade, and regulation, which could impact future operations.
