General Motors (GM) has raised its full-year 2023 guidance after reporting first-quarter earnings that beat Wall Street expectations on both the top and bottom lines.
The Detroit automaker reported earnings per share of $2.21 U.S. versus $1.73 U.S. that was expected among analysts who cover the company, according to Refinitiv data.
The company’s Q1 revenue came in at $39.99 billion U.S. compared to $38.96 billion U.S. that was forecast by analysts.
In addition to the earnings beat, General Motors raised its forward guidance, saying it now expects adjusted earnings of between $11 billion U.S. and $13 billion U.S., or $6.35 U.S. to $7.35 U.S. a share.
The guidance has been increased from a previous range of $10.5 billion U.S. to $12.5 billion U.S., or between $6 U.S. and $7 U.S. per share.
The automaker also raised expectations for its 2023 free cash flow to a range of $5.5 billion U.S. and $7.5 billion U.S., up from a previous outlook of $5 billion U.S. to $7 billion U.S.
However, General Motors lowered its 2023 guidance for net income attributable to shareholders due to an $875 million U.S. special charge related to an employee buyout program.
The new range for net income is between $8.4 billion U.S. and $9.9 billion U.S., down from $8.7 billion U.S. to $10.1 billion U.S. previously.
The buyouts are part of the company’s plan to cut $2 billion U.S. in costs by the end of 2024.
Ahead of reporting its Q1 results, GM announced plans to invest more than $3 billion U.S. in a new battery cell manufacturing plant in the U.S., with a target date to begin operations in 2026.
General Motors’ stock rose 4% in premarket trading on news of its Q1 earnings. Over the last 12 months, the company’s share price has declined 14% to $34.29 U.S. per share.
