What to Expect From General Motors' Next Quarterly Earnings Report

General Motors Company (GM), headquartered in Detroit, Michigan, is a leading automobile company that designs, manufactures, and markets cars, trucks, gas-powered pickups, SUVs, and automobile parts as well as provides software-enabled services and subscriptions. Valued at $58.9 billion by market cap, the company offers a broad range of vehicle portfolio under the Buick, Cadillac, Chevrolet, and GMC brand names as well as a range of EVs and also offers after-sales services through its dealer network. The auto giant is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Tuesday, Jan. 28.

Ahead of the event, analysts expect GM to report a profit of $1.75 per share on a diluted basis, up 41.1% from $1.24 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.

For the full year, analysts expect GM to report EPS of $10.34, up 34.6% from $7.68 in fiscal 2023. Its EPS is expected to rise 4% year over year to $10.75 in fiscal 2025. 

GM stock has outperformed the S&P 500’s ($SPX) 27.2% gains over the past 52 weeks, with shares up 48.7% during this period. Similarly, it outperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY)31.4% gains over the same time frame.

GM's strong performance can be attributed to its compelling vehicle lineup, robust demand for pickups and SUVs, and successful cost-cutting efforts. Notably, the company achieved variable cost profitability on EVs and aims for broader profitability by Q4.

On Oct. 22, GM shares closed up more than 9% after reporting its Q3 results. Its adjusted EPS of $2.96 surpassed Wall Street expectations of $2.49. The company’s revenue was $48.8 billion, beating Wall Street forecasts of $44 billion. GM expects full-year adjusted EPS in the range of $10 to $10.50.

Analysts’ consensus opinion on GM stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 23 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy,” 11 give a “Hold,” and two recommend a “Strong Sell.”  GM’s average analyst price target is $57.30, indicating a potential upside of 7% from the current levels.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.