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General Motors posted a surprise net loss for the fourth quarter, but its revenue and adjusted earnings per share beat estimates.
The automaker posted billions in one-time charges for recent moves like restructuring its China business and halting development of its Cruise robotaxis.
GM predicts rising profits in 2025, assuming a «stable policy environment» in North America.
General Motors (GM) posted better fourth quarter revenue and adjusted earnings than analysts had expected, as it recorded billions in one-time charges because of recent changes to the automaker’s business plans.
The parent of Chevrolet, Buick, and GMC posted a $2.96 billion, or $1.64 per share, net loss for the fourth quarter on $47.7 billion in revenue. Analysts had expected a $1.55 billion profit on $44.17 billion in revenue, per estimates compiled by Visible Alpha.
After adjusting for the special costs, GM reported $2.5 billion in adjusted earnings before interest or taxes (EBIT), with $1.92 in adjusted earnings per share, above the $1.78 per share analysts had expected.
The loss was due to $5 billion in one-time charges, like a $4 billion charge to go along with the restructuring of its joint venture in China after the unit has struggled in recent quarters. GM also took a roughly $500 million charge for the halting of development of its Cruise autonomous vehicles.
Looking ahead to 2025, GM projected net income from $11.2 billion to $12.5 billion, or $11 to $12 per share, above the $10.5 billion and $8.84 per share analysts had expected. The automaker said its outlook «assumes a stable policy environment» in North America, as analysts have said uncertainty on electric vehicle regulations and subsidies under the Trump administration could slow EV sales.
Following the report’s release, Wedbush analysts called it «another major step in the right direction as management continues to navigate the choppy waters in this EV macro while the turnaround story for GM continues…»
After rising immediately following the report, GM share were roughly flat in premarket trading.
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