General Motors is preparing to announce its earnings before the market opens. Here’s what analysts are anticipating from Wall Street

Projected earnings per share: $1.16Revenue: $38.67 billionThese figures would represent a 10.3% decrease in revenue from the previous year and a 45.3% decline in adjusted earnings per share. In the fourth quarter of 2022, GM reported $43.11 billion in revenue, $2 billion in net income attributable to stockholders, and $3.8 billion in adjusted earnings before interest and taxes.The focus for investors goes beyond quarterly earnings, with attention on potential lingering or unexpected expenses resulting from the company’s recent labor agreement with the United Auto Workers union, as well as the 2024 guidance.Analysts on Wall Street anticipate GM’s 2024 forecast to be relatively unchanged from its earnings in the previous year. The normalization of favorable vehicle pricing, which had led to exceptional profits in recent years, is expected. Meanwhile, the implementation of cost-cutting measures is likely to help counteract the higher labor costs incurred due to the UAW deal.In November, GM CEO Mary Barra stated that the company is finalizing a budget for 2024 that would fully cover the additional costs resulting from the new labor agreements.In November, GM reinstated its 2023 guidance with an expected net income attributable to stockholders ranging from $9.1 billion to $9.7 billion, or EPS of $6.52 to $7.02; adjusted earnings before interest and taxes of $11.7 billion to $12.7 billion, or $7.20 to $7.70 adjusted EPS; and adjusted automotive free cash flow of $10.5 billion to $11.5 billion. The guidance factored in an estimated $1.1 billion EBIT-adjusted impact from approximately six weeks of U.S. labor strikes, as well as some costs associated with an accelerated $10 billion share repurchase program announced in November.Investors are also keen to receive updates on GM’s new electric vehicles, along with Cruise, GM’s majority-owned autonomous vehicle subsidiary, which is currently under scrutiny following an October pedestrian accident in San Francisco.Last week, Cruise and GM disclosed findings from internal investigations into the incident, highlighting cultural issues, regulatory shortcomings, and poor leadership at the company. However, the investigations did not uncover intentional deception or misleading of regulators.The companies also revealed that Cruise remains under scrutiny by various bodies, including the U.S. Department of Justice and the U.S. Securities and Exchange Commission.This is a developing story. Please check back for further updates.— CNBC’s Michael Bloom contributed to this report.

Author: OpenAI