General Motors surges on $10 billion buyback plan, increased dividend
General Motors (NYSE:GM) has reinstated its 2023 earnings guidance today as it continues to expect net income in the range of $9.1 billion to $9.7 billion.
Moreover, the automaker announced a 33% increase in its dividend for 2024 and outlined plans for a $10 billion accelerated share buyback program.
GM shares rose 5.1% on the news.
The company also reiterated guidance for adjusted EPS in the range of $7.20-7.70 and adjusted Ebit between $11.7 billion and $12.7 billion.
«GM will deliver very strong profits in 2023 thanks to an exceptional portfolio of vehicles that customers love and our operating discipline,» said GM Chair and CEO Mary Barra.
GM also said it now anticipates full-year 2023 capital spending to be between $11 billion and $11.5 billion, which is at the low end of its prior guidance. This positive development is driven by the previously announced retiming of certain product programs and more capital-efficient investment
«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,» Barra added.
«With this clear path forward, and our strong balance sheet, we will return significant capital to shareholders.»
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