GM Q4 2022 Earnings: $2.0 Billion Income On $43.1 Billion Revenue11
GM Q4 2022 earnings were headlined by $2.0 billion in net income on $43.1 billion in revenue. Compared to the fourth quarter of 2021, the results represent a 17.6 percent improvement in net income and a 28 percent uptick in revenue, driven by “wholesale volume growth and robust pricing across the portfolio,” but partially offset by “mix normalization, commodity costs, and GMF [GM Financial] EBT lower” than in the year-ago quarter.
GM Q4 2022 Earnings Summary
|METRIC||UNIT||Q4 2022||Q4 2021||Q4 2022 - Q4 2021||% CHANGE Q4 2022 / Q4 2021|
|NET REVENUE||BILLION USD||$43.1||$33.6||+$9.5||+28.3%|
|OPERATING INCOME||BILLION USD||$2.6||$1.5||+$1.1||+73.3%|
|NET INCOME ATTRIBUTED TO STOCKHOLDERS||BILLION USD||$2.0||$1.7||+$0.3||+17.6%|
|NET INCOME MARGIN||PERCENT||4.6%||5.2%||-0.6%||N/A|
|EARNINGS PER SHARE (EPS) DILUTED||USD PER SHARE||$1.39||$1.16||+$0.23||+19.8%|
|NON GAAP METRICS|
|ADJUSTED AUTOMOTIVE FREE CASH FLOW||BILLION USD||$4.5||$6.4||-$1.9||-29.7%|
|EPS DILUTED - ADJUSTED1||BILLION USD||$2.12||$1.35||+$0.8||+57%|
|DELIVERIES||MILLIONS OF VEHICLES||1,551||1,539||+12K||+0.8%|
|GM NORTH AMERICA EBIT-ADJUSTED||BILLION USD||$3.7||$2.2||+$1.5||+68.2%|
|- GM NORTH AMERICA EBIT-ADJUSTED MARGIN||PERCENT||10.3%||8.1%||2.2%||N/A|
|GM INTERNATIONAL EBIT-ADJUSTED||BILLION USD||$0.1||$0.0||+$0.1||-|
|- GM INTERNATIONAL EBIT-ADJUSTED MARGIN||PERCENT||1.6%||0.9%||+0.7%||N/A|
|GM CHINA EQUITY INCOME||BILLION USD||$0.2||$0.2||$0.0||0%|
|- TOTAL CHINA AUTO JV NI/REV||PERCENT||4.3%||3.3%||+1.0%||N/A|
|CRUISE EBIT-ADJUSTED||BILLION USD||-$0.5||-$0.3||-$0.2||-66.7%|
|GM FINANCIAL EBT-ADJUSTED||BILLION USD||$0.8||$1.2||-$0.4||-33.3%|
|- GM FINANCIAL RETURN ON AVERAGE TANGIBLE COMMON EQUITY||PERCENT||25.1%||32.6%||-7.5%||N/A|
Global Sales & Share
GM recorded 1,551 million vehicle deliveries globally during the quarter, representing an increase of 12,000 units or 0.8 percent year-over-year compared to the 1,539 million delivered during the same time frame a year ago.
GM’s global market share in the markets where it competes was 9.2 percent during Q4 2022, up 0.3 basis points (bps) from 8.9 percent during the same time period a year ago. This was the result of higher deliveries in North America and South America, but lower volumes in Asia/Pacific, Middle East and Africa, including China.
GM North America
GM North America (GMNA), General Motors’ largest and most profitable division, posted:
- $35.5 billion in revenue vs. $26.9 billion in revenue in the year-ago quarter
- $3.7 billion EBIT-adjusted vs. $2.2 billion in the year-ago quarter
- 729K vehicle deliveries vs. 511K in the year-ago quarter
GM International (GMI), which excludes GM China joint venture earnings, posted:
- $4.3 billion in revenue vs. $3.5 billion in the year-ago quarter
- $0.1 billion EBIT-adjusted vs. $0.0 billion in the year-ago quarter
- 180K vehicle wholesales vs. 163K in the year-ago quarter
GM China Auto Joint Venture
GM China auto joint venture posted:
- $10.4 billion in revenue vs. $13.6 billion in the year-ago quarter
- $0.2 billion in equity income vs. $0.2 billion in the year-ago quarter
- 796K vehicle wholesales vs. 1,007K in the year-ago quarter
Cruise, GM’s division that’s working on developing and bringing to market a robo-taxi service, posted:
- $0.0 billion in revenue vs. $0.0 billion in the year-ago quarter
- $(0.5) billion in EBIT-adjusted vs. $(0.3) billion in the year-ago quarter on increased expenses driven by operational expansion
GM Financial, General Motors’ captive finance arm, posted:
- $0.8 billion EBT-adjusted vs. $1.2 billion in the year-ago quarter
- 25.1 percent in return on average tangible common equity vs. 32.6 percent in the year-ago quarter
- $28.5 billion in liquidity vs. $25.7 billion in the year-ago quarter
- $7.91x leverage ratio vs. 8.07x in the year-ago quarter
GM’s guidance for 2023 involves driving “consistently strong core auto operating performance”, with the following highlights:
- $10.5 billion-$12.5 billion in EBIT-adjusted
- $6.00-$7.00 EPS-diluted-adjusted
- $5-7 billion in adjusted automotive free cash flow
- 8-10 percent GMNA EBIT-adjusted margins
- $11 billion-$13 billion in capital spend
- 16 percent-18 percent in ETR-adjusted
The automaker listed the following items as expected key variance drivers:
- ~$1.5 billion normalization of GM Financial EBT
- ~$1 billion lower pension income; non-cash impact
GM also provided the following assumptions for 2023:
- 15 million U.S. vehicle SAAR
- 5-10 percent higher wholesale volume year-over-year, partially offset by mix normalization
- GMNA incentive increases to be partially offset by 2023 model year pricing and strong portfolio
- Commodities and logistics to provide a slight tailwind
- Clean energy tax credit benefits expected to provide at least $0.3 billion tailwind
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They can’t tell you when a vehicle will be delivered but they know how much money they made? Sure they do! I don’t believe it.
@Mike @Smartconsumer…….I totally agree with both of your statements. GM and other large corporations have “FASTID” off these inflated vehicle prices and are living large, let the 2nd great depression begin and watch them complain. The absurdity of vehicle prices these days is out of control.
The problem is that the average American doesn’t CARE what they finance, they only CARE about the monthly payment!! Which is why 2/3s of Americans are living paycheck to payment……insanity!!
Jan 7 2022 GM stock was 62.27 and December 30, 2022 GM stock was 33.64 that is a differance of -28.63 That is 54%…..This stock over the last 12 months was in a dramatic decline. Resulting in a significant loss of paper wealth. Let’s see how she does this year..
I guess GM will post what GM want others to see or believe. My info is straight from the stock market. And people don’t want this stock. 54% that owned it sold it for a loss. Some big some small.
It’s behind the poor running of GM. Poor decisions.
There will be a reset. What side will you be on? AutoZone stock is looking better and better. People will keep their vehicles and do repairs as required. $500 to $1,000 is a lot easier than that monthly payment of $700 for 72 months on mid-grade truck for $50K..
Most stock saw dramatic declines in 2022. A very one sided perspective.
Based on how long GM has been around, investors realize this isn’t a growth stock. Invest in GM for long term income from dividends.
Now many investors aren’t happy with that and they want an immediate return. This why Tesla skyrocketed. That was the “in” stock. Investing in cryptocurrency is way more popular as well. Apparently these investors are content with the risk that comes with those investment purchases.
If you’re investing in GM stock, you should be looking at their profitability. That profitability will allow for some decent dividends from the record profit. Based on the 2022 profitability, it would seem GM made a lot of decisions to boost profitability. Now the question is how much those decisions impacted customers and will they move on or stick with GM.
What I posted was based on the info above. We can go back and forth, but I believe we would be pushing an open door on all points. OR NOT.
I still like AutoZone.
The results here is more than inflated pricing. GM has worked since the bail out to right size and control cost.
While many here still think they should be building Olds, Pontiac and Saturn the net results now are that more is not always more profit.
The automotive markets have changes over the years and most automakers have two division one luxury and one volume. GM is one of the few with a couple extra due to their profits.
Doing 5 versions of a cars on the same platform no longer works in volume brands only high end where you can afford to make more changes. As well as the W bodies sold GM still went bankrupt as they did not make money as many were dumped on rental fleets.
It was times like this GM prepared for and it is paying odd now. Right sizing a company is important in this day and age as the economics are not the same.
As for the real world economy. You can’t keep paying more and more money to basic jobs and expect prices not to spike. Mc Donald’s was not considered a career. Many of these entry jobs were for kids to establish themselves. but today Mom and Dad Support them and fail to make them work. Then they wonder why at 35 they are still in the basement playing video games.
The way forward in this world is education and or skills. Today Skills are in great demand. Welders are hard to find and I have local companies willing to train workers. My Father In Law made Six figures a year welding.
This deal where the political people talk about living wage are killing this country. They should be getting these people to take these jobs that can expand their knowledge and skills so they can make the money they want and leave the entry jobs as a stepping stone.
I pumped gas and changed oil while in school and collage. Today after a few detours I work in the performance aftermarket and getting paid for my hobby. I never expected to make a career changing oil and no one should.
Work smarter not harder. You do not need a big degree to make a good life.