General Motors Co GM stock beat on EPS and revenue as it reported its fourth-quarter earnings on Jan. 30.
Golden Cross On Chart Post Q4 Earnings
Lifted by positive sentiments around the company, the stock just made a Golden Cross on the technical price charts.
On Jan. 30, the 50-day SMA for General Motors stock crossed over the 200-day SMA, indicating bullish sentiments overriding bearish ones.
Being a momentum indicator, the golden cross indicates that prices are continuously increasing—gaining momentum. It is interpreted by analysts and traders as signaling a definitive upward turn in a market.
EV Sales To Pick In H2 2024
Per its earnings report, General Motors' Q4 EPS of $1.24 beat consensus by 6.90%, while revenue of $42.98 billion beat consensus by 10.92%. In its communication to shareholders, the company stated that there is a growing agreement that the U.S. economy, job market, and automotive sales will exhibit resilience. General Motors anticipates robust industry sales of approximately 16 million units, with the proportion of electric vehicles (EVs) in the mix steadily increasing.
The company recognized a deceleration in its electric vehicle (EV) business but anticipates a positive turn in the U.S. portfolio’s profitability during the second half of the year. For Q4, the company reported a sales decline of (0.3)% year-on-year to $42.98 billion.
Analysts, who reviewed the stock in January have a price target of $40-$44.
Focus On EV Shift, Consumer Demand Trajectory In 2024
Wedbush analyst Daniel Ives, who reviewed the stock after Q4 earnings announcement, commented: “Some good news in Detroit after a tough Sunday; GM solid numbers and outlook.” Ives has an Outperform rating on the stock, with a 12-month price target of $40.
GM closed FY23 strongly with robust December results, positioning itself for a prosperous 2024, said Ives. This quarter was crucial to restore Street confidence amid uncertainties in the EV sector and recent challenges, reflecting GM’s resilience in pursuing profit margins and growth targets.
The company, emphasizing profitability and cost control after the UAW issues, anticipates favorable adjusted EBIT in FY24. Additionally, GM plans to spend $1 billion less on Cruise in 2024. Amid its EV transition, it is set to launch six new EV models, including the Chevy Blazer EV, Chevy Silverado EV RST, Chevy Equinox EV, Cadillac Escalade IQ, Cadillac CELESTIQ, and GMC Sierra EV.
“The big focus… will be around the pace of the EV shift at GM over the coming years along with the consumer demand trajectory in 2024,” noted Ives.
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