What drove GM's earnings surprise in 2024?

General Motors (GM) reported earnings per share (EPS) of $6.37 for 2024, which was a significant upside surprise compared to analyst expectations. GM's earnings surprise can be attributed to several key factors: |code|Ticker|Name|Date|Revenue Surprise|Estimate EPS|market_code| |---|---|---|---|---|---|---| |GM|GM.N|general motors|2024 Q1|2.34E9|2.12|169| |GM|GM.N|general motors|2024 Q2|2.97E9|2.71|169| |GM|GM.N|general motors|2024 Q3|4.02E9|2.4|169| |GM|GM.N|general motors|2024 Q4|4.97E9|1.72|169| 1. **Revenue Growth**: GM's total revenue for the year was $187.44 billion, which represents a substantial increase from the previous year. This growth was driven by strong performance across all segments, including a 7.6% increase in revenue in the first quarter of 2024 compared to the same period in the previous year. 2. **Profit Margin Improvement**: The company's profit margin improved significantly, with a net margin of 6.9% in the first quarter of 2024, up from 5.9% in the same quarter of the previous year. This improvement was driven by higher revenue and effective cost management. 3. **Strong Performance in Key Markets**: GM's Chevrolet and GMC brands maintained their leadership positions in the U.S. pickup and full-size SUV markets. Additionally, the company's electric vehicle (EV) sales gained momentum, with record sales of the Chevrolet Bolt EV and Bolt EUV crossover. 4. **Effective Pricing Strategy**: Despite a slight decrease in the average sales price per vehicle, GM's focus on higher-profit vehicles and effective pricing strategies allowed the company to maintain profitability. The company's pricing strategy was characterized by above-average pricing and well-managed inventories, which helped to maintain market share and profitability. 5. **Cost Control**: GM's disciplined approach to cost management and lower capital spending contributed to improved profitability. The company's focus on optimizing its internal combustion engine (ICE) and EV margins also helped to boost profitability. In summary, GM's earnings surprise in 2024 can be attributed to strong revenue growth, profit margin improvement, effective market positioning, and cost control. These factors combined to enable the company to exceed analyst expectations and achieve robust financial performance.