4 GM Analysts Break Down Q1 Earnings: 'This Is Just Borrowing From 2023'

General Motors Company GM reported first-quarter results Tuesday, with revenues of $35.98 billion missing Street expectations and adjusted earnings of $2.09 per share significantly beating the consensus estimate of $1.68 per share.

RBC Capital Markets On General Motors: Analyst Joseph Spak maintained an Outperform rating while reducing RBC's price target for the company from $70 to $58.

Although the company delivered an earnings beat and reiterated its guidance, “the 'how' is unlikely to calm concerns,” the analyst wrote. He stated that General Motors had “$3bn more cost in the system” but managed to maintain its guidance “with help of price.”

General Motors is delaying some investments to “manage near-term,” Spak said. This “doesn’t help the narrative of trying to beat Tesla” and General Motors will still need to invest, “so really this is just borrowing from 2023,” he added.

Wells Fargo On General Motors: Analyst Colin Langan reiterated an Overweight rating for GM while raising the price target from $72 to $74.

Analyst Langan wrote in the note, “GM sees commodity headwinds mostly being offset by continued strong pricing.” He added, “They also indicated some help may come from the deferral of part the $1B in planned investment initiatives.”

Morgan Stanley On General Motors: Analyst Adam Jonas maintained an Equal-Weight rating and a $50 price target for GM.

“Impressive cost performance for GMNA given the 100k wholesale miss in the US,” Jones wrote in the note. He added, “The company commented tens of thousands of vehicles were in transit from Mexico that were not invoiced during the quarter that will be included in subsequent periods.”

General Motors also achieved a “balance between very strong price and even higher input cost pressures,” the analyst stated.

Wedbush On General Motors: Daniel Ives maintained an Outperform rating for the company while lowering the price target for the company from $85 to $50.

“The highlight of 1Q was GM handily beating Adjusted EBIT ($4.04 billion vs Street estimate of $3.38 billion) coupled with better-than-expected volume production for the rest of 2022,” Ives said in the note.

“Barra & Co. sounded confident that the supply chain issues were easing and chip sourcing will improve in 2022 as the company reaffirmed its guidance for 25%-30% volume growth in 2022,” the analyst mentioned. “This is a strong number for GM,” he added.

GM Price Action: GM shares were gaining 1.63% to $38.66 Wednesday afternoon, according to Benzinga Pro. 

GM CEO Mary Barra. Benzinga file photo by Dustin Blitchok.