General Motors (NYSE:GM) shares jumped nearly 8% in the early session today after the automotive major delivered an impressive set of fourth-quarter numbers. Revenue of $42.98 billion outpaced expectations by $4.17 billion. Further, EPS of $1.24 comfortably exceeded estimates by $0.08.
In Automotives, GMNA (GM North America) segment net sales remained largely unchanged at $35.23 billion. However, net sales in the GMI (GM International) segment declined to $3.94 billion from $4.32 billion in the year-ago period. On the other hand, GM’s net income margin improved by 30 basis points to 4.9% in Q4. The company’s total North American market share dropped to 15.2% from 16.2% in the prior year period. In sync, its market share in China dropped to 7.9% from 9.1% in the year-ago period.
For Fiscal Year 2024, the company anticipates adjusted EPS in the range of $8.50 to $9.50. Capital spending for the year is expected to hover between $10.5 billion and $11.5 billion. Yesterday, GM increased its quarterly dividend by 33% to $0.12 per share. The GM dividend is payable on March 14 to investors of record on March 1.
Is GM a Good Stock to Buy?
Overall, the Street has a Moderate Buy consensus rating on General Motors and the average GM price target of $46.90 implies a substantial 32.5% potential upside in the stock. That’s after a nearly 7.8% drop in the company’s share price over the past six months.
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