11:07 AM EDT, 06/11/2024 (MT Newswires) -- General Motors' ( GM ) new $6 billion share-repurchase authorization announced Tuesday, along with plans to exhaust a prior buyback program before the end of the second quarter, could strengthen the company's earnings per share outlook, according to Tudor, Pickering, Holt.

GM said it will begin executing on the new authorization when its $10 billion accelerated share-repurchase program announced in November is completed.

The company repurchased $300 million shares in the first quarter and expects to buy back the remaining $1.1 billion left in a prior authorization this month. In the first half of 2024, GM expects to reach $1.7 billion in shareholder returns that includes both buybacks and dividends.

"We are very focused on the profitability of our (internal combustion engine) business, we're growing and improving the profitability of our (electric vehicle) business and deploying our capital efficiently," Chief Financial Officer Paul Jacobson said in a statement. "This allows us to continue returning cash to shareholders."

TPH energy analyst Matt Portillo said in a Tuesday note that GM remains the brokerage's top pick within its auto coverage. He reiterated a buy rating and $62 price target on the stock. Shares of GM were up 1.2% in recent trading.

With GM trading at a 4.7-times price-to-earnings ratio on TPH's 2024 numbers, "allocating more dollars to returning capital via this avenue makes a lot of sense and should strengthen the outlook for EPS going forward while giving management the ability to continue taking down shares opportunistically with (free cash flow)," Portillo said.

Heading into the company's second-quarter, Portillo said TPH is slightly ahead of consensus for adjusted earnings per share at $2.65 versus Wall Street's $2.55 view. GM in April affirmed its 2024 adjusted EPS guidance range of $8.50 to $9.50.

"The investments GM made in its brands and product portfolio over the last several years, and the company's operating discipline, are delivering consistently strong revenue growth, margins and free cash flow," Jacobson said.

Price: 48.21, Change: +0.64, Percent Change: +1.35