General Motors said it expects to generate an operating profit this year of between $13 billion and $15 billion as a semiconductor shortage that marred vehicle production and sales for most of last year shows signs of improving.
The forecast is in line with many Wall Street analysts’ expectations as well as the company’s record $14.3 billion pre-tax adjusted earnings in 2021. Net income this year is expected between $9.4 billion and $10.8 billion, also in-line with its $10 billion profit in 2021.
“With an improving outlook for semiconductors in the U.S. and China, we expect our 2022 results will remain strong,” CEO Mary Barra said in a letter to shareholders, saying it’s earnings will be “at or near record levels.”
The guidance was announced as the Detroit automaker reported fourth-quarter earnings Tuesday that beat Wall Street’s expectations despite slightly missing on revenue.
Here’s how GM performed, compared with analysts’ estimates as compiled by Refinitiv:
Adjusted EPS: $1.35 vs $1.19 expected
Revenue: $33.58 billion vs $34.01 billion expected
Shares of the automaker were down by as much as 3% during after-hours trading. The stock closed Tuesday at $54.07 a share, up by 2.5%.
GM reported an adjusted pretax profit of $3.7 billion in the fourth quarter of 2020. Revenue was $37.5 billion during that quarter.
After rising 40% in 2021, GM’s shares fell 10% in January. GM’s stock has a buy rating and a price target of $76.07 a share, according to average analysts’ estimates compiled by FactSet.
— CNBC’s Michael Bloom contributed to this report.
