General Motors delivered ‘whopping’ EPS guidance, says Evercore ISI

Evercore ISI analyst Chris McNally notes the firm had previewed a conservative “$7-8 EPS” FY24 adjusted EPS guidance from General Motors but admits ” we were WRONG” after the company delivered a “whopping” $8.50-$9.50 EPS outlook in what the firm calls “one of the more dramatic guides to start the year.” The firm, which adds that automotive free cash flow guidance of $8B-$10B was “also VERY strong,” believes the Street view will move to about $8.50 EPS in FY25 and “this will lend support for GM‘s stock to grind towards $40/low $40s.” The firm has an Outperform rating and $38 price target on GM shares.