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What's in Store for General Motors (GM) This Earnings Season?
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General Motors (GM - Free Report) is slated to release second-quarter 2020 results on Jul 29, before the opening bell. The Zacks Consensus Estimate for the quarter’s loss is pegged at $1.76 per share on revenues of $20.34 billion.
The automaker delivered solid results in the last reported quarter on higher-than-anticipated profits in the North American segment. General Motors beat estimates in each of the trailing four quarters, the average surprise being 112.59%. This is depicted in the graph below:
The Zacks Consensus Estimate for General Motors’ second-quarter loss per share has remained unrevised at $1.76 for the past week. This compares unfavorably with the year-ago quarter’s earnings per share of $1.64. The Zacks Consensus Estimate for revenues also suggests a year-over-year plunge of 43.58%.
Factors that Might Have Influenced Q2 Performance
General Motors is expected to have witnessed a decline in quarterly sales volumes amid industry headwinds. Heightening coronavirus fears are likely to have thwarted vehicle demand during this period. Lower vehicle sales amid a weakening consumer demand and soft economic conditions are expected to have hurt company’s quarterly revenues. General Motors also withdrew the 2020 guidance for the to-be-reported quarter.
General Motors’ customer deliveries in the United States in the quarter under review plummeted 34% from the prior-year period to 492,489 deliveries, as the coronavirus outbreak marred demand for vehicles.
Further, the Zacks Consensus Estimate for the company’s Automotive segment’s net sales is pegged at $12.5 billion, suggesting a slump of 61.3% year on year. The consensus estimate for net sales in the International and North America segments are pegged at $2,540 million and $9,940 million for the second quarter, calling for a decline from the prior year’s $4,047 million and $28,324 million, respectively. Moreover, the Zacks Consensus Estimate for the Financial segment’s net sales is expected to be $2,347 million, suggesting a decline of 35.5% year over year.
Nonetheless, General Motors introduced vehicle financing programs to spur demand during such uncertain times in the quarter. The firm’s focus on cost-cutting efforts amid the pandemic is expected to have aided second-quarter margins to some extent.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for General Motors this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP:General Motors has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank:General Motors carries a Zacks Rank of 3 (Hold) currently.
Stocks to Consider
Here are a few stocks worth considering, as these have the right combination of elements to come up with an earnings beat this time around:
O’Reilly Automotive, Inc. (ORLY - Free Report) has an Earnings ESP of +40.19% and carries a Zacks Rank #2 at present. The company is slated to release second-quarter 2020 earnings on Jul 29.
Penske Automotive Group, Inc. (PAG - Free Report) has an Earnings ESP of +207.14% and currently carries a Zacks Rank #3. The company is scheduled to report quarterly numbers on Jul 29.
Group 1 Automotive, Inc. (GPI - Free Report) has an Earnings ESP of +114.82% and carries a Zacks Rank #3 currently. The company is set to announce earnings figures on Jul 30.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Image: Bigstock
What's in Store for General Motors (GM) This Earnings Season?
General Motors (GM - Free Report) is slated to release second-quarter 2020 results on Jul 29, before the opening bell. The Zacks Consensus Estimate for the quarter’s loss is pegged at $1.76 per share on revenues of $20.34 billion.
The automaker delivered solid results in the last reported quarter on higher-than-anticipated profits in the North American segment. General Motors beat estimates in each of the trailing four quarters, the average surprise being 112.59%. This is depicted in the graph below:
General Motors Company Price and Consensus
General Motors Company price-consensus-chart | General Motors Company Quote
Which Way are the Estimates Headed?
The Zacks Consensus Estimate for General Motors’ second-quarter loss per share has remained unrevised at $1.76 for the past week. This compares unfavorably with the year-ago quarter’s earnings per share of $1.64. The Zacks Consensus Estimate for revenues also suggests a year-over-year plunge of 43.58%.
Factors that Might Have Influenced Q2 Performance
General Motors is expected to have witnessed a decline in quarterly sales volumes amid industry headwinds. Heightening coronavirus fears are likely to have thwarted vehicle demand during this period. Lower vehicle sales amid a weakening consumer demand and soft economic conditions are expected to have hurt company’s quarterly revenues. General Motors also withdrew the 2020 guidance for the to-be-reported quarter.
General Motors’ customer deliveries in the United States in the quarter under review plummeted 34% from the prior-year period to 492,489 deliveries, as the coronavirus outbreak marred demand for vehicles.
Further, the Zacks Consensus Estimate for the company’s Automotive segment’s net sales is pegged at $12.5 billion, suggesting a slump of 61.3% year on year. The consensus estimate for net sales in the International and North America segments are pegged at $2,540 million and $9,940 million for the second quarter, calling for a decline from the prior year’s $4,047 million and $28,324 million, respectively. Moreover, the Zacks Consensus Estimate for the Financial segment’s net sales is expected to be $2,347 million, suggesting a decline of 35.5% year over year.
Nonetheless, General Motors introduced vehicle financing programs to spur demand during such uncertain times in the quarter. The firm’s focus on cost-cutting efforts amid the pandemic is expected to have aided second-quarter margins to some extent.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for General Motors this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP:General Motors has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank:General Motors carries a Zacks Rank of 3 (Hold) currently.
Stocks to Consider
Here are a few stocks worth considering, as these have the right combination of elements to come up with an earnings beat this time around:
O’Reilly Automotive, Inc. (ORLY - Free Report) has an Earnings ESP of +40.19% and carries a Zacks Rank #2 at present. The company is slated to release second-quarter 2020 earnings on Jul 29.
Penske Automotive Group, Inc. (PAG - Free Report) has an Earnings ESP of +207.14% and currently carries a Zacks Rank #3. The company is scheduled to report quarterly numbers on Jul 29.
Group 1 Automotive, Inc. (GPI - Free Report) has an Earnings ESP of +114.82% and carries a Zacks Rank #3 currently. The company is set to announce earnings figures on Jul 30.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
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