Ford Motor Co F shares are trading higher Wednesday. The stock appears to be getting a boost from General Motors Co GM, which reinstated 2023 guidance, increased its dividend and announced an accelerated buyback.
What To Know: GM previously withdrew its guidance due to labor disruptions caused by the UAW strike, but the company reinstated guidance on Wednesday morning.
GM said it expects full-year 2023 earnings to be in the range of $6.52 to $7.02 per share. Adjusted earnings are expected to be between $7.20 and $7.70 per share. Earnings guidance includes an estimated $1.1 billion EBIT-adjusted impact from the strikes.
Full-year adjusted automotive free cash flow is expected to be between $10.5 billion and $11.5 billion, up from a prior outlook of $7 billion to $9 billion.
"We are finalizing a 2024 budget that will fully offset the incremental costs of our new labor agreements and the long-term plan we are executing includes reducing the capital intensity of the business, developing products even more efficiently, and further reducing our fixed and variable costs," said Mary Barra, chair and CEO of GM.
"With this clear path forward, and our strong balance sheet, we will return significant capital to shareholders."
GM announced intentions to increase its common stock dividend by 33% beginning in January and also announced a $10 billion accelerated share repurchase program. GM will immediately receive and retire $6.8 billion worth of its common stock. GM shares were up more than 11% at last check.
F Price Action: Ford shares were up 4.48% at $10.83 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Ford.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
