July 23, 2024


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General Motors gains as investors look past near-term supply chain issues

GM CEO Mary Barra Holds Press Conference On Ignition Switch Recall

Bill Pugliano/Getty Images News

General Motors Company (NYSE:GM) traded higher after the automaker’s guidance overshadowed a revenue miss for a quarter that included supply chain headwinds.

Adjusted EBIT fell 8.4% year-over-year to $4.04B. Automotive EBIT-adjusted was $3.1B vs. $3.5B a year ago.

The company ended the quarter with automotive liquidity of $32.9B vs. $36.8B at the end of Q4 of 2021.

GM guided for FY22 adjusted EBIT of $13.0B to $15.0B vs. $13.4B consensus and EPS of $6.50 to $7.50 vs. a prior view for $6.25 to $7.25 and $6.70 consensus.

General Motors’ (GM) U.S. sales units dropped 20% to 512,846 vehicles in Q1 primarily due to supply chain issues escalated further by Russia-Ukraine war.

Looking ahead, GM thinks the supply chain supporting its EV production will be a competitive advantage with the company establishing strategic, long-term relationships, and sourcing as much as possible from North America and Australia.

CEO Mary Barra said the biggest growth opportunity for GM in North America is in electric trucks. “We’ve led the full-size pickup segment for two consecutive years, and we will lead the EV truck market as well,” she promised.

Shares of GM (GM) rose 1.91% in after-hours trading to $38.77 following the mixed Q1 report.

Other GM news: General Motors is going electric with the iconic Chevy Corvette.