NYSE:GM Q1 Earnings Surpass Street; EPS of $2.78 Beats $2.61 Estimate
General Motors reported first-quarter adjusted earnings per share of $2.78, outpacing the $2.61 consensus and marking a 6.5% beat. Revenue climbed 2.3% year-over-year to $44.02 billion, topping the $43.26 billion analysts forecast. Adjusted EBIT stood at $3.49 billion, narrowly ahead of the $3.45 billion target despite a 9.8% year-over-year decline. The automaker’s shares initially slumped nearly 3% in pre-market trading but steadied as investors parsed the beat and looked ahead to the rescheduled earnings call on May 1 at 8:30 am ET. Track NYSE:GM in Real Time.
Sales Surge to 693,363 Units as Trucks and EVs Power Growth
U.S. deliveries jumped 17% to 693,363 vehicles, fueled by Chevrolet Silverado and GMC Sierra deliveries exceeding 200,000 units—their strongest first quarter since 2007. Luxury-SUV models such as the Tahoe, Suburban and Yukon each posted sales gains exceeding 30%, underscoring GM’s strength in high-margin segments even as import tariffs loom.
Cash Flow Under Stress: $811 Million vs. $833.9 Million Expected
Adjusted automotive free cash flow fell 26% from a year ago to $811 million, missing the $833.9 million forecast. The decline reflects rising input costs and working-capital headwinds. Over the past three years, GM has generated $30 billion of surplus operating cash flow, returning roughly two-thirds to shareholders, a track record Citi analysts point to as evidence of disciplined capital allocation.
Tariffs Trigger Guidance Suspension and Buyback Freeze
In response to newly announced 25% auto and parts tariffs, GM halted its $4 billion share-repurchase program and withdrew its 2025 financial outlook. CFO Paul Jacobson emphasized that previous guidance did not factor in tariff impacts, preventing any reliable forecast until clarity emerges. The paused buyback will see its $2 billion accelerated share-repurchase commitment completed in Q2 before any further repurchases resume.
Potential Reimbursement Relief Could Ease Headwinds
Late Monday, the White House indicated it may retroactively rebate overlapping steel and aluminum duties and cap auto-parts levies at 3.75% of a vehicle’s U.S. value for one year, stepping down to 2.5% thereafter. Should this policy materialize, GM could recover millions in paid duties, partially offsetting tariff costs.
Insider Sentiment Remains Neutral Amid Volatility
A review of recent filings shows no material insider purchases or sales since mid-2022 (see insider transactions). The absence of fresh insider buying suggests executives are allowing operational performance to drive confidence rather than personal stake changes.
Domestic Plant Utilization as a Mitigation Lever
Analysts at Citi highlight underutilized U.S. plants in Fort Wayne, Indiana, and Spring Hill, Tennessee—facilities sharing platforms with Mexican-built models—that GM can pivot to absorb production displaced by Mexican-assembly tariffs. This flexibility could trim tariff exposures without resorting to costly local investment.
Technical Outlook: Support at $45, Resistance at $49
GM’s chart shows a consolidation around the 50-day moving average near $46. A break above $48.50—the 200-day MA—could spark a run toward $52. Conversely, a drop below $45 risks revisiting $43. Volume has held near its 30-day average, indicating balanced participation.
Strategic Recommendation: Accumulate on Dips
With a durable beat on EPS and revenue, disciplined cash-flow generation and tangible mitigation strategies for tariff risk, NYSE:GM merits accumulation on pullbacks into the $45–$46 range. A retest of $52 aligns with Citi’s $62 price target as tariff clarity emerges and plant-utilization levers take effect.
