A GMC pickup truck is displayed for sale on a lot at a General Motors dealership in Austin, Texas, on January 5, 2023.
Brandon Bell | fake images
DETROIT— General Motors is set to report its fourth-quarter earnings before the bell rings on Tuesday.
This is what Wall Street expects, according to average estimates compiled by LSEG, formerly known as Refinitiv.
- Adjusted earnings per share: $1.16
- Revenue: 38.67 billion dollars
Those results would mark a 10.3% decline in revenue compared to the prior year, as well as a 45.3% decline in adjusted earnings per share. GM's fourth-quarter 2022 results included $43.11 billion in revenue, net income attributable to shareholders of $2 billion and adjusted earnings before interest and taxes of $3.8 billion.
Aside from quarterly earnings, investors will be watching for any residual or unexpected costs from the company's new labor contract, signed last year with the United Auto Workers union, as well as forecasts for 2024.
Wall Street analysts expect a “flat” outlook from GM compared to last year's earnings. Favorable vehicle prices, which have resulted in record profits in recent years, are normalizing. Meanwhile, cost-cutting measures are expected to help offset higher labor costs as a result of the agreement with the UAW.
In November, GM CEO Mary Barra said in a statement that the company is finalizing a 2024 budget that would “fully offset the incremental costs of our new labor agreements.”
GM reset its 2023 guidance in November to include net income attributable to shareholders of $9.1 billion to $9.7 billion, or EPS of $6.52 to $7.02; adjusted earnings before interest and taxes of $11.7 billion to $12.7 billion, or $7.20 to $7.70 adjusted EPS; and adjusted automotive free cash flow of between $10.5 billion and $11.5 billion.
The guidance included an estimated $1.1 billion effect on adjusted EBIT from approximately six weeks of labor strikes in the United States, as well as some costs associated with an accelerated $10 billion share buyback program that was announced in November.
Investors will also be interested in any updates on GM's new electric vehicles, as well as Cruise, GM's majority-owned autonomous vehicle subsidiary that is currently the subject of several investigations following an October accident involving a pedestrian in San Francisco.
Cruise and GM last week released results of internal investigations into the incident that outlined cultural problems, regulatory ineptitude and poor leadership at the company, but found that officials did not intentionally mislead or mislead regulators.
The companies also revealed that Cruise remains under investigation by multiple entities, including the US Department of Justice and the US Securities and Exchange Commission.
This is breaking news. Please check back for additional updates.
-CNBC Michael Bloom contributed to this report.
