General Motors (GM) Q4 earnings 2022

DETROIT – General Motors is going to report its fourth-quarter earnings ahead of the call on Tuesday. Here’s what Wall Street is expecting, according to the Refinitiv Consensus:

• Adjusted earnings per share: $1.69
• Income: $40.65 billion

In November, GM tightened its 2022 adjusted earnings range to $13.5 billion to $14.5 billion from its previous forecast of $13 billion to $15 billion. It also increased it the cash flow forecast will be between $10 billion and $11 billion, up from $7 billion to $9 billion.

While investors will monitor fourth-quarter results for signs of declining consumer demand or lower profits, the automaker’s 2023 guidance is expected to take center stage.

Goldman Sachs said it expects GM’s forecast to be below consensus, “driven by price and mix, and lower financial services earnings.” The automaker is expected to drop its adjusted earnings per share by about 20% for all of 2023, Refinitiv estimates.

Automakers have achieved record results in recent years on the back of limited new car supply and robust consumer demand. They counted on sustained pent-up demand as inventory levels were adjusted, hoping to avoid big discounts or incentives to sell cars.

But this scenario is gradually normalizing, leaving new car prices and profits in constant motion.

In the fourth quarter of 2021, GM reported adjusted earnings per share of $1.35 and revenue of $33.58 billion, higher than Wall Street’s EPS estimate of $1.19 per share, according to Refinitiv data, but falls short of revenue estimate of $34.01 billion.

This story is evolving. Please stay tuned for updates.