GM beats profit expectations in first quarter, increases guidance for 2024

General Motors Co. beat Wall Street expectations on Tuesday, delivering first-quarter net income of $3 billion on revenue of $43 billion.

The Detroit automaker increased its guidance for the year of adjusted earnings to be in a range of $12.5 billion to $14.5 billion, up from $12 billion to $14 billion. The automaker expects its net income for the year will be between $10.1 billion and $11.5 billion, above its previous guidance of $9.8 billion to $11.2 billion.

GM's first-quarter 2024 net income was up from last year's $2.4 billion, which it made on revenue of $40 billion. GM's adjusted earnings per share of $2.62 was above the average Wall Street estimate of $2.14. GM's revenue also beat the Street's average estimate of $41.88 billion.

More:GM 1Q 2023 earnings beat Wall Street expectations, automaker raises guidance for the year

The results come after GM saw a 1.5% decline in overall sales year over year in the first quarter as fleet deliveries slipped 23%. GM's U.S. dealers sold 594,233 new vehicles in the first three months of this year compared with 603,208 a year ago. The automaker noted its retail sales, or sales to individual customers, increased 6%. It attributed the sales decline to the drop in fleet deliveries, which were affected by temporary production constraints on midsize pickups and vans.

More:GM sales drop slightly on fewer fleet deliveries, EV sales down

"Our consumer has been remarkably resilient in this period of higher interest rates," CFO Paul Jacobson said on a conference call. "And we've seen that in all of our transaction prices and our strong go-to-market strategies. It's been a strategy that's worked for us and we think in this environment that we can continue to perform."

GM's adjusted earnings before interest and taxes in the first quarter were $3.87 billion, a slight increase from the $3.8 billion reported in the first quarter of 2023. GM's net income margin for the quarter was 6.9%, up from last year's 6%.

Pre-tax earnings in GM North America totaled $3.8 billion in the quarter. GM International lost $10 million in pre-tax earnings.

GM is focusing on getting more EVs launched this year after selling 16,425 in the United States during the first quarter, down from 20,000 in the first quarter of 2023 — a milestone that was supported by sales of the since-discontinued electric Chevrolet Bolt, which was not based on GM's Ultium EV platform. The automaker did see sizable gains in the EVs based on Ultium.

The Bolt, which GM halted production of in December, still led GM's EV sales with 7,040 delivered, down 64% from last year. Meanwhile, the Cadillac Lyriq's sales increased 499% from 968 to 5,800.

"In our EV business, we’re seeing good early sales momentum for vehicles like the Cadillac LYRIQ," CEO Mary Barra wrote in a letter to shareholders. "We also continue to see sequential and year-over-year improvements in profitability as we benefit from scale, material cost and mix improvements."

GM is aiming to build and wholesale between 200,000 and 300,000 Ultium EVs in North America this year.

Ford Motor Co. releases its first-quarter earnings on April 24. Stellantis NV releases first-quarter shipments and revenues on April 30.

khall@detroitnews.com

@bykaleahall