GM is firing on all cylinders, but the market doesn't seem to care.General Motors (GM -8.89%) stock dropped 9% on Tuesday after the company reported a great fourth quarter and solid guidance for 2025. But the market wasn't happy, and Travis Hoium shows how investors should interpret the news in this video.*Stock prices used were end-of-day prices of Jan. 28, 2025. The video was published on Jan. 28, 2025. ...

Financial Performance - For the year ending December 31, 2025, the company expects diluted EPS between $11.00 and $12.00, net income attributable to stockholders between $11.2 billion and $12.5 billion, and EBIT-adjusted between $13.7 billion and $15.7 billion[191]. - The company's total net sales and revenue for the year ended December 31, 2024, were $187.442 billion, an increase of 9.1% compared to $171.842 billion in 2023[208]. - Total net sales and revenue for General Motors increased to $157.5 billion in 2024, up 11.4% from $141.4 billion in 2023[223]. - EBIT-adjusted for General Motors North America rose to $14.5 billion in 2024, an increase of 18.1% compared to $12.3 billion in 2023[223]. - Net income attributable to stockholders for 2024 is $6.008 billion, a decrease from $10.127 billion in 2023 and $9.934 billion in 2022[322]. - EBIT-adjusted for 2024 is $14.934 billion, compared to $12.357 billion in 2023 and $14.474 billion in 2022, reflecting a significant increase[322]. - The effective tax rate for 2024 is 30.0%, significantly higher than 5.4% in 2023 and 16.3% in 2022[333]. - ROIC-adjusted for 2024 is 20.8%, an increase from 16.4% in 2023 and 20.0% in 2022, indicating improved capital efficiency[337]. - The diluted earnings per share for 2024 is $7.189, compared to $10.022 in 2023 and $8.915 in 2022[329]. Sales and Market Performance - Total vehicle sales in the U.S. for the year ended December 31, 2024, were 2.7 million units, representing a market share of 16.5%, an increase of 0.3 percentage points compared to 2023[194]. - Industry sales in North America for the year ended December 31, 2024, were 20.3 million units, an increase of 3.5% compared to 2023[193]. - In China, total vehicle sales were 1.8 million units for a market share of 6.9%, a decrease of 1.5 percentage points compared to 2023, amid intense price competition[196]. - General Motors' wholesale vehicle sales in North America increased to 3.5 million units in 2024, a rise of 10.1% from 3.1 million units in 2023[223]. Financial Position and Liquidity - Total Automotive available liquidity decreased slightly to $35.5 billion in 2024 from $36.3 billion in 2023[258]. - GM Financial's total available liquidity decreased slightly to $29.3 billion in 2024 from $29.9 billion in 2023[276]. - Cruise's available liquidity was $0.3 billion at the end of 2024, down from $1.3 billion in 2023, reflecting a total change of $(1.0) billion[270]. - Average debt outstanding for GM Financial increased to $109.0 billion in 2024, an 8.6% rise from $100.4 billion in 2023[236]. Expenses and Costs - The automotive and other selling, general and administrative expense increased to $10.6 billion in 2024, a rise of 7.9% from $9.8 billion in 2023[216]. - The company reported a decrease in automotive and other cost of sales to $151.1 billion in 2024, down 6.9% from $141.3 billion in 2023[211]. - The provision for loan losses at GM Financial rose to $1.029 billion in 2024, reflecting a 24.6% increase from $826 million in 2023[236]. - The liabilities for product warranty and recall campaigns amount to $10.6 billion as of December 31, 2024[371]. - The liabilities for dealer and customer allowances, claims, and discounts total $7.3 billion as of December 31, 2024[372]. Investments and Strategic Initiatives - The company plans to invest approximately $10.0 billion to $11.0 billion in battery cell manufacturing joint ventures in 2025[239]. - The company anticipates continued investments in suppliers and strategic agreements to support its transition to electric vehicles[242]. - The company plans to cease funding Cruise's robotaxi development due to the competitive market and resource requirements[272]. - The company plans to continue its strategic activities, including the transition of certain Buick dealers as part of its EV strategy[324]. Audit and Internal Controls - The Company maintained effective internal control over financial reporting as of December 31, 2024, based on the COSO criteria[378]. - The audit provided an unqualified opinion on the consolidated financial statements for the period ended December 31, 2024[379]. - The audit included evaluating management's estimates related to product warranty, sales incentives, and lease residual values, which involved significant judgment[372][374]. - The audit procedures included sensitivity analyses to assess the impact of changes in assumptions on the estimated liabilities[373][376]. - The Company’s internal controls over financial reporting were tested for effectiveness, ensuring reliability in financial reporting[382]. Risks and Sensitivities - The company is exposed to interest rate risks as financial assets and liabilities have different characteristics that may impact financial performance[353]. - The company’s financial risk management policy is designed to protect against risks arising from large adverse market movements on key exposures[343]. - The estimated cost accrued for recall campaigns at the time of vehicle sale is sensitive to the estimated number of recall events, with a 10% increase in the estimated take rate leading to an increase of approximately $0.4 billion in costs[289]. - A 5% relative decrease in forecast recovery rates would increase the allowance for loan losses by $0.1 billion[292]. - The estimated residual value of GM Financial's leased vehicles was $23.5 billion as of December 31, 2024, with potential depreciation expense changes based on a 1% relative change in estimated residual values[299][300].

Key TakeawaysGeneral Motors stock was the biggest decliner in the S&P 500 on Tuesday, falling nearly 9% as concerns about the potential impact of tariffs outweighed fourth-quarter revenue and adjusted profit that topped 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 profit in 2025, assuming a "stable policy environment" in North America. General Motors (GM) stock was the big ...

General Mills Inc. (GIS) has completed the sale of its Canadian Yogurt business to Sodiaal, marking a significant step in the company's ongoing portfolio reshaping strategy. This divestiture includes the Canada operations of several well-known yogurt brands, including Yoplait and Liberte, two key players in the Canada yogurt market. The sale encompasses a manufacturing facility in Saint-Hyacinthe, Quebec. This move is in line with General Mills' broader efforts to streamline its operations and focus on high ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

General Motors passed a major milestone in its efforts to make electric vehicles profitable.The Detroit automaker said EVs were "variable profit positive" in 2024.GM built 189,000 EVs last year and aims to build 300,000 this year.General Motors is finally making some money in the electric vehicle business. The automaker reported its EVs were "variable profit positive" in 2024, meaning that they earned more money than GM spent on manufacturing costs like labor and parts.GM doesn't break out its EV earnings l ...

General Motors (GM) reported fourth-quarter 2024 adjusted earnings of $1.92 per share, which surpassed the Zacks Consensus Estimate of $1.85. The bottom line also increased from the year-ago quarter’s level of $1.24. Higher-than-expected revenues from GM North America (GMNA), GM International (GMI) and GM Financial segments led to the outperformance. Revenues of $47.71 billion beat the Zacks Consensus Estimate of $44 billion and increased from $42.98 billion recorded in the year-ago period.See the Zacks Ear ...

General Motors (GM -10.58%) closed out a strong 2024 with fourth-quarter results that beat Wall Street's expectations. The U.S.-based automaker also predicts another good year in 2025 with even better bottom-line results.So investors might wonder why the stock tanked by more than 10% on Tuesday morning after that report came out. GM shares remained down by 10.4% as of 11:44 a.m. ET.One reason for the stock's sharp decline was that GM stock soared nearly 50% in 2024. But it's what the company didn't say in i ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Key TakeawaysGeneral 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 bi ...