10-QPeriod: Q1 FY2024

General Motors Co Quarterly Report for Q1 Ended Mar 31, 2024

Filed April 23, 2024For Securities:GM

Summary

General Motors Company (GM) reported a strong first quarter in 2024, with total net sales and revenue increasing by 7.6% year-over-year to $43.01 billion. This growth was primarily driven by a significant increase in revenue from GM Financial and solid performance in the automotive segment. Net income attributable to stockholders rose to $2.98 billion, up from $2.37 billion in the prior year's quarter, leading to a substantial increase in diluted earnings per share to $2.56 from $1.69. The company's profitability was bolstered by improved automotive sales volume and favorable mix, alongside a reduction in selling, general, and administrative expenses. Despite the positive financial results, investors should note the ongoing challenges and strategic shifts. Cruise, GM's autonomous vehicle unit, continues to face operational hurdles and regulatory scrutiny, impacting its financial performance. Furthermore, the company is navigating market pressures such as pricing moderation and increased incentives within the automotive sector, while also focusing on cost reductions and scaling its electric vehicle (EV) portfolio to improve profitability. GM's outlook for the full year 2024 remains cautiously optimistic, with projected net income and EPS within a specific range, emphasizing the company's resilience and ongoing transition strategy.

Financial Highlights

44 data points
Beta

Revenue

$43.01B

Net Income

$2.95B

6.9% Net Margin

EPS (Diluted)

$2.56

Total Assets

$276.59B

Cash & Equivalents

$17.64B

Free Cash Flow

$369.00M

Financial Statements
Beta
Revenue$43.01B
Operating Expenses$39.28B
Operating Income$3.74B
Net Income$2.95B
EPS (Basic)$2.57
EPS (Diluted)$2.56
Shares Outstanding (Basic)1.16B
Shares Outstanding (Diluted)1.16B

Key Highlights

  • 1Total net sales and revenue increased by 7.6% to $43.01 billion, driven by both automotive and GM Financial segments.
  • 2Net income attributable to stockholders grew to $2.98 billion, a substantial increase from $2.37 billion in Q1 2023.
  • 3Diluted earnings per share (EPS) rose significantly to $2.56, up from $1.69 in the prior year period.
  • 4Automotive and other selling, general and administrative expenses decreased by 14.6%, contributing to improved profitability.
  • 5GM Financial revenue saw a notable 14.0% increase, largely due to higher finance charge income.
  • 6The company reiterated its full-year 2024 guidance, expecting net income attributable to stockholders between $10.1 billion and $11.5 billion.
  • 7Cruise continues to experience operational challenges and regulatory investigations, with driverless operations still paused.

Frequently Asked Questions

General Motors reported a 7.6% increase in total net sales and revenue for the first quarter of 2024, reaching $43.01 billion, up from $39.99 billion in the same period of 2023. This growth was fueled by higher revenues in both the automotive and GM Financial segments.

GM reaffirmed its full-year 2024 guidance, projecting net income attributable to stockholders between $10.1 billion and $11.5 billion, and diluted EPS between $8.94 and $9.94. This outlook reflects the company's strategy to leverage strong performance in its core business while managing the transition to electric vehicles.

GM Financial demonstrated robust performance, with total revenue increasing by 14.0% to $3.81 billion. This growth was primarily driven by an increase in finance charge income, attributed to higher effective yields from increased benchmark interest rates and portfolio growth. Despite higher interest expenses, GM Financial's adjusted earnings before taxes (EBT-adjusted) remained strong.

Cruise continues to face significant challenges. Following a pedestrian accident and subsequent regulatory actions, its driverless operations remain paused. While the company has resumed manual driving for mapping purposes, it is unclear when driverless commercial operations will resume. In the first quarter of 2024, Cruise reported an adjusted loss before interest and taxes (EBIT-adjusted) of $442 million, reflecting ongoing investment and operational restructuring.