General Motors (GM) reported a record adjusted operating profit of $14.9 billion in 2024, marking a year-over-year growth of 21%. Additionally, the company’s revenue increased by 9% to $187 billion compared to 2023. The carmaker credited its performance to robust sales of full-size pickups, new and redesigned SUVs, and an expanding EV (electric vehicle) portfolio. The growth was further supported by strong pricing, lower inventory levels, and a profit boost from the U.S.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
GM Faces $5 Billion Charge from China Struggles
GM incurred over $5 billion in special charges during the fourth quarter, including $4 billion in non-cash restructuring costs and impairments related to its China joint ventures. Additionally, the company faced $0.5 billion in charges from ceasing funding for its Cruise robotaxi business.
Nevertheless, the company surpassed Wall Street’s expectations for both revenue and earnings in the fourth quarter. Earnings per share came in at $1.92, adjusted, surpassing the estimated $1.89, while revenue reached $47.7 billion, exceeding the anticipated $43.93 billion.
GM Predicts Continued Earnings Growth in 2025
The carmaker is confident in its performance in 2025. Also, its financial outlook for 2025 aligns with or surpasses many of the expectations set by Wall Street analysts.
The company forecasted adjusted operating earnings for 2025 to be between $13.7 billion and $15.7 billion, with net income ranging from $11.2 billion to $12.5 billion. Meanwhile, analysts had anticipated adjusted earnings for 2025 to be approximately $14 billion.
Is GM a Good Stock to Buy?
Analysts remain cautiously optimistic about GM stock, with a Moderate Buy consensus rating based on seven Buys, five Holds, and two Sells. The average price target for GM is $58.64, suggesting an upside potential of 6.7% from its current price. These ratings could change after GM’s results today.
