General Motors is set to report earnings before the bell. Here’s what Wall Street expects

DETROIT — General Motors is set to report its fourth-quarter earnings before the bell Tuesday.

Here’s what Wall Street is expecting, according to average estimates compiled by LSEG, formerly known as Refinitiv.

• Adjusted earnings per share: $1.16
• Revenue: $38.67 billion

Those results would mark a 10.3% decrease in revenue compared to a year earlier as well as a 45.3% decline in adjusted earnings per share. GM’s 2022 fourth-quarter results included $43.11 billion in revenue, net income attributable to stockholders of $2 billion and adjusted earnings before interest and taxes of $3.8 billion.

Aside from quarterly earnings, investors will be watching for any residual or unexpected costs from the company’s new labor contract, struck last year with the United Auto Workers union, as well as 2024 guidance.

Wall Street analysts expect a “flattish” forecast from GM compared to last year’s earnings. Favorable vehicle pricing, which has resulted in record profits in recent years, is normalizing. Meanwhile, cost-cutting measures are expected to assist in offsetting higher labor costs as a result of the UAW deal.

In November, GM CEO Mary Barra in a statement said the company is finalizing a budget for 2024 that would “fully offset the incremental costs of our new labor agreements.”

GM reinstated its 2023 guidance in November to include net income attributable to stockholders of $9.1 billion to $9.7 billion, or EPS of $6.52 to $7.02; adjusted earnings before interest and taxes of $11.7 billion to $12.7 billion, or $7.20 to $7.70 adjusted EPS; and adjusted automotive free cash flow of $10.5 billion to $11.5 billion.

The guidance included an estimated $1.1 billion EBIT-adjusted effect from roughly six weeks of U.S. labor strikes as well as some costs associated with an accelerated $10 billion share repurchase program that was announced in November.

Investors also will be interested in any updates regarding GM’s new electric vehicles as well as Cruise, GM’s majority-owned autonomous vehicle subsidiary that’s currently the subject of several probes following an October accident involving a pedestrian in San Francisco.

Cruise and GM last week released findings of internal investigations into the incident that outlined cultural issues, regulatory ineptitude and poor leadership at the company, but found that officials did not intentionally deceive or mislead regulators.

The companies also disclosed Cruise remains under investigation by several entities, including the U.S. Department of Justice and the U.S. Securities and Exchange Commission.

This is breaking news. Please check back for additional updates.

— CNBC’s Michael Bloom contributed to this report.