General Motors Gears Up for Q1 Earnings Announcement

With a market cap of $43.4 billion, General Motors Company (GM) specializes in designing, building, and selling trucks, crossovers, cars, and automobile parts while also providing software-enabled services and subscriptions. The Detroit, Michigan-based company operates through its segments: GM North America, GM International, Cruise, and GM Financial.

Upcoming Earnings Report and Analyst Expectations

The automotive manufacturer is set to release its Q1 2025 earnings before the market opens on Tuesday, April 29. Analysts predict that GM will report adjusted earnings of $2.63 per share, reflecting a slight increase from $2.62 per share in the same quarter last year. Notably, GM has exceeded analysts’ bottom-line estimates consistently for the past four quarters, highlighting its recent performance stability.

Fiscal Forecast and Future Earnings Growth

For fiscal 2025, analysts anticipate General Motors will report an adjusted EPS of $11.51, indicating an increase of 8.6% from $10.60 in fiscal 2024. The company’s earnings for fiscal 2026 are expected to continue this upward trend, growing nearly 3% year-over-year to around $11.85 per share.

Stock Performance and Market Comparison

Over the past 52 weeks, GM shares have increased by 4.8%. This growth slightly lags behind the S&P 500 Index’s ($SPX) 5.5% rise and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 7.4% returns in the same period.

Analysis of Recent Earnings and Market Reactions

Despite reporting better-than-expected Q4 2024 results on January 28, GM shares fell by a significant 8.9%. Both revenues and earnings exceeded Wall Street expectations; topline revenue rose 11% year-over-year to $47.7 billion, while adjusted EPS surged 54.8% to $1.92. However, GAAP-based net income suffered due to $4 billion in non-cash restructuring charges, impairment of interests in certain Chinese joint ventures, and half a billion dollars in charges linked to halting funding for its Cruise robotaxi business. These special charges led to a net loss of approximately $3 billion for shareholders on a GAAP basis, a decrease from the net income of $2.1 billion recorded in Q4 2023.

Analysts’ Consensus and Future Outlook

Overall, analysts maintain a moderately optimistic outlook for GM with a “Moderate Buy” rating. Among the 24 analysts covering the stock, 10 recommend a “Strong Buy,” one rates it as a “Moderate Buy,” 10 suggest a “Hold,” and three issue a “Strong Sell” rating. The mean price target of $58.10 suggests a potential 28.7% upside compared to current price levels.

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

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