General Motors sees another strong year ahead after a solid Q4

General Motors Co (NYSE: GM) is trading up in premarket on Tuesday after reporting better-than-expected financial results for its fourth quarter.

General Motors issues upbeat future guidance

Investors are cheering also because the management sees another strong year ahead.

General Motors expects its adjusted per-share earnings to fall between $8.50 and $9.50 in 2024 on up to $10 billion of automotive free cash flow.

The guidance topped both Street estimates as well as the full-year results GM reported this morning. Paul Jacobson – its chief of finance said in a press release today:

General Motors Q4 earnings snapshot

• Earned $2.1 billion versus the year-ago $2.0 billion
• Per-share earnings also climbed from $1.39 to $1.59
• Adjusted EPS printed at $1.24 as per the earnings report
• Revenue remained about flat year-on-year at $42.98 billion
• Consensus was $1.16 a share on $38.67 billion in revenue

General Motors reported $1.1 billion in special charges related to the UAW strike (read more) on Tuesday. Commenting on China, CFO Jacobson said today:

GM's stance on electric vehicles

On Tuesday, CEO Mary Barra agreed that EV adoption in the United States has been moving forward at a slower-than-expected pace. Still, General Motors remains committed to new additions in its electric vehicles lineup in 2024, she added.

GM saw a 2.9% annualised growth in EV sales in 2023. The New York listed firm abandoned plans of building lower cost electric vehicles with Honda late last year as Invezz reported here.

Lastly, the legacy automaker said it will spend about a billion-dollar less this year on Cruise - its autonomous vehicle unit that is currently under investigation following an accident on October 2nd. Wall Street currently has a consensus "overweight" rating on $GM.