Click here for the PDF: The Weekly Beacon April 26 2024 US

We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.

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This weeks issue: Brown & Brown, Insurance stocks, Consistent compounders, Earnings season, GM earnings, EVs vs traditional automakers, Tesla stock, TikTok ban, Congress ban TikTok, Senate, Capital gains tax, Biden taxation plan, 2024 election, Consumer debt, Credit card debt, Government debt, U.S. financials ETF, Cathie Wood, Ark Investments, ETF outflows.

GM strong earnings

General Motors delivered a strong start to 2024 after reporting earnings on the morning of April 23rd. The company beat Q1 sales and earnings estimates as well as last year’s Q1 numbers.

Revenue came in at $43 billion versus a $42.1 billion estimate and $40 billion last year.
Earnings came in at $2.62 per share versus an estimate of $2.12 per share and $2.21 per share last year.
Operating margins were also higher than expected.

GM shares bounced by 5% after this release.

GM shares are trading at 52-week highs and have performed extremely well over the last 6 months.

Wall Street expected lower earnings on higher sales this year due to the newly minted labor deal with UAW. However, labor costs were not as big as a headwind as once thought.

GM raised its fiscal year outlook after a strong Q1. They raised their operating profit guidance to between $12.5 billion and $14.5 billion. The midpoint is close to $1 billion higher than the $12.4 generated in operating profit in 2023. GM also expects strong cash flows in 2024. GM raised expectations for adjusted automotive free cash flow to a range of $8.5 billion to $10.5 billion, up from an earlier forecast of $8 billion to $10 billion.

Click here for the PDF: The Weekly Beacon April 26 2024 US