General Motors Set for Earnings Reveal Amid Positive Market Trends
General Motors Company (GM), based in Detroit, Michigan, stands as a prominent player in the automobile industry. The company designs, manufactures, and markets a diverse range of vehicles, including cars, trucks, SUVs, gas-powered pickups, and automobile parts, alongside offering software-enabled services and subscriptions. Currently valued at $58.9 billion in market capitalization, GM maintains a varied portfolio featuring brands such as Buick, Cadillac, Chevrolet, and GMC, alongside its growing electric vehicle (EV) range and after-sales services via its dealer network. A key moment ahead is the announcement of its fiscal fourth-quarter earnings for 2024, which is set for Tuesday, Jan. 28, before markets open.
Anticipated Earnings and Current Trends
As the earnings date approaches, analysts forecast that GM will reveal a profit of $1.75 per share on a diluted basis. This figure signifies a rise of 41.1% compared to $1.24 per share reported in the same quarter last year. Notably, GM has outperformed Wall Street’s earnings per share (EPS) estimates consistently over its last four quarterly reports.
Looking at the complete fiscal year, experts predict that GM’s EPS will reach $10.34, marking a year-over-year increase of 34.6% from last year’s $7.68. For fiscal 2025, expectations remain strong, with a projected EPS growth of 4%, reaching $10.75.
Stock Performance and Market Comparisons
In the past 52 weeks, GM stock has significantly outperformed the S&P 500 index, which rose by 27.2%. During this period, GM shares have surged by 48.7%, greatly exceeding the Consumer Discretionary Select Sector SPDR Fund’s (XLY) gain of 31.4%.
Factors Behind GM’s Success
The automobile maker’s impressive performance can largely be traced to its appealing vehicle selection, solid demand for pickups and SUVs, and strategic cost-cutting initiatives. Particularly, GM has succeeded in achieving variable cost profitability in its EVs and has plans for broader profitability by Q4.
On Oct. 22, GM shares soared more than 9% following the release of its Q3 results. The adjusted EPS reached $2.96, surpassing analyst expectations of $2.49. Furthermore, GM’s revenue reported at $48.8 billion exceeded Wall Street’s projections of $44 billion. The company anticipates its full-year adjusted EPS will fall within the range of $10 to $10.50.
Analyst Opinions on GM Stock
According to analysts, GM stock holds a moderately bullish outlook, reflected in a “Moderate Buy” overall rating. Among 23 analysts monitoring the company, nine recommend a “Strong Buy,” one suggests a “Moderate Buy,” 11 advocate for a “Hold,” and two advise a “Strong Sell.” The average analyst price target stands at $57.30, pointing to a potential upside of 7% compared to the current trading levels.
On the date of publication,
Neha Panjwani
did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information is provided for informational purposes. For additional information, please view the Barchart Disclosure Policy
here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
