Analysts at Wedbush noted that General Motors Company (NYSE:GM) delivered rock-solid March results out of the gates for 2023 with a strong outlook for the rest of the year and “a raised guidance bar” which is “music to the ears of investors.”
GM reported first quarter results that saw revenue rise 11% year-on-year to $39.99 billion, handily beating Wall Street’s estimate of $38.54 billion due to strong customer demand for its cars.
Notably, GM delivered 1.38 million vehicles during the quarter, up from 1.55 million cars in the same period in 2022. North America represented 51.1% of total deliveries at 707,000 cars. The Detroit car giant’s core business comes from North America from its popular Buick, Cadillac, Chevrolet, and GMC brands.
“With Barra & Co. in the midst of a massive EV transformation this was a key quarter and outlook for the Street as it appears the profit margins and growth targets for the rest of the year are humming in a shaky macro,” the Wedbush analysts said in a note to clients.
“Importantly the $2 billion of cost savings (by the end of 2024) is ahead of plan and the EV production/model lineup looks on target with a robust 2H23 on the docket. Overall, this was a strong quarter/outlook with GM heading into a pivotal 2023.”
GM raises guidance for 2023
Wedbush hailed GM’s raised FY23 guidance predicting adjusted earnings before interest and taxes (EBIT) to be in the range of $11 billion to $13 billion, compared to the prior guide of $10.5 billion to $12.5 billion.
“We maintain our Outperform rating,” concluded the analysts, who also have an existing $46 price target on GM stock.
General Motors shares traded at $33.29 on Tuesday afternoon.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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