General Motors Company (NYSE:GM) shares soared as the US car giant reported that its profit jumped in the fourth quarter, driven by record revenue and strong demand.
For the 4Q, the Detroit-based automaker shook off a shortage of semiconductors and other supply-chain problems that have bogged down factory schedules for more than two years, to report revenue of $43.1 billion, compared to $40 billion expected by analysts.
The profitable car maker also logged adjusted earnings before interest and taxes of $3.8 billion, beating estimates of $3.2 billion. GM said strong results in North America helped offset weakness in China.
Investors reacted to the earnings, sending shares up nearly 8% to $39.19 in morning trade.
GM also reported full year adjusted earnings before interest and taxes of $14.5 billion, on the higher end of its $13 billion to $15 billion forecast in November.
"GM led the US industry in total sales and delivered the largest year-over-year increase in market share of any OEM, thanks to strong demand for our products and improved supply chain conditions," GM CEO Mary Barra said in a letter to shareholders.
For 2023, GM said it expects pretax profit to total between $10.5 billion and $12.5 billion, or $6 to $7 per share, above the average analysts’ forecast of $5.78 per share, according to FactSet.
GM also expects strong cash flows from automotive operations for the calendar year, including net automotive cash from operating activities of $16 billion to $20 billion.
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