GM Earnings: Good 2024 Guidance Boosts Stock by Nearly 10% in Jan. 30 Trading

GM finished 2023 with a good fourth quarter—hindered by nearly $1 billion in UAW strike costs—and introduced 2024 guidance that suggests a good year ahead. We are not changing our fair value estimate but will reassess all modeling inputs while rolling our model for the 10-K. Fourth-quarter adjusted diluted EPS of $1.24 fell 41.5% year over year but beat the $1.16 Refinitiv consensus. Adjusted EBIT of $1.8 billion fell by 53.8%, and EBIT margin declined by 470 basis points to 4.1%. Adjusted auto free cash flow of $1.3 billion fell by 70% but still left GM with automotive cash and securities of $19.8 billion.