General Motors (NYSE:GM) shares fell more than 6% since the company reported its Q1 results on Tuesday, with EPS and revenue beat being overshadowed by the H2/23 downshift and sequential price deterioration implied by the 2023 guidance.
Q1 EPS came in at $2.21, better than the Street estimate of $1.70. Revenue was $40 billion, compared to the Street estimate of $38.4 billion. For 2023, the company expects GAAP net income attributable to stockholders in the range of $8.4-$9.9 billion, down from the previous range of $8.7-$10.1 billion.
The implication is that 2024 EBIT could be lower year-over-year, fueling the fire of investors worried about peak Auto earnings. Though to be clear, management indicated so far through April pricing and demand are holding up.