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Will North America Segment Aid General Motors' (GM) Q4 Earnings?
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General Motors’ (GM - Free Report) North American market segment — which contributes a bulk of the company’s overall revenues — is likely to have fueled the company’s fourth-quarter earnings, scheduled for a Feb 10 release before the bell.
In the last reported quarter, wholesale unit volumes in the North American segment totaled 799,000 (which accounts for more than 80% of the total vehicle sales), marginally down 0.25% year over year. Also, vehicles sold in the Unites States totaled 665,192, down 10% year on year. Nonetheless, sales improved sequentially each month within the quarter.
Sales for both Chevrolet Blazer and the Cadillac XT6 climbed 45% each in the third quarter compared with the prior-year quarter. Sales of Buick’s compact SUV, the Envision, jumped 44%. The company’s all-new crossovers — the Chevrolet Trailblazer and Buick Encore GX — continued to gain momentum. Moreover, despite the tight inventory, the company’s large pick-up trucks sold well, especially heavy-duty pickups.
Encouragingly, revenues in the North American segment came in at $29,128 million, higher than the year-ago quarter’s $27,971 million. The region reported an operating income of $4,366 million, higher than the year-ago profit of $3,023 million, reflecting robust customer demand for new vehicles and services, especially the company’s full-size pickups and SUVs.
North American Market to Have Aided GM in Q4
General Motors’ strong and wining product portfolio in North America, led by its full-size pick-up trucks and SUVs, is likely to have performed well during the fourth quarter. In fact, the company witnessed its best fourth-quarter retail sales since 2007, on the outstanding performance of the Chevrolet, GMC and Cadillac models.
Markedly, General Motors’ retail sales in the United States during the December-end quarter jumped to 771,323 vehicles from the prior quarter’s 665,192 vehicles. In fact, total sales for the quarter were up 5 percent year over year. Average transaction prices set record for fourth-quarter and full-year 2020 at $41,886 and $39,229, respectively.
For the second consecutive year, the GMC Sierra witnessed the best fourth quarter, with total deliveries up 14% year on year. The fourth-quarter GMC and Chevrolet deliveries were up 14% and 12%, respectively during this period. Chevrolet Silverado crew cabs marked the best quarter and calendar-year retail and total sales ever, and the Chevrolet Traverse recorded the best-ever fourth-quarter total and retail sales. Seven of every 10 full-size SUV retail units sold in the fourth quarter were a Chevrolet Tahoe, Suburban or GMC Yukon chiefly owing to robust demand for all-new models.
Cadillac, in fact, registered the best fourth-quarter retail share and sales since 2016. Retail deliveries were up 16% during the October-December quarter, backed by the successful launches of CT4, CT5 and Escalade.
Evidently, the Zacks Consensus Estimate for fourth-quarter automotive revenues in the North American segment is pegged at $28,547 million, suggesting a jump from the $22,706 million recorded in the fourth quarter of 2019. Remarkably, the consensus mark for the operating income from the said segment is pinned at $2,975 million, indicating skyrocketing growth of 1,031% from the prior-year figure. Importantly, the consensus mark for wholesale volumes in the said segment is 821,000 units, calling for a year-on-year jump of 20%.
We believe, stellar revenues from the North American segment are likely to have fueled the Zacks Rank #3 (Hold) company’s fourth-quarter bottom line, partly offset by declining revenues from the International markets.
Here are a few other stocks lined up to release fourth-quarter results in February. Encouragingly, our model predicts an earnings beat for these stocks:
BorgWarner (BWA - Free Report) has an Earnings ESP of +2.94% and carries a Zacks Rank #3, currently. The company is scheduled to report quarterly numbers on Feb 11.
Allison Transmission Holdings (ALSN - Free Report) has an Earnings ESP of +7.44% and carries a Zacks Rank #3 at present. The company will announce fourth-quarter 2020 results on Feb 17.
Magna International (MGA - Free Report) has an Earnings ESP of +5.42% and currently flaunts a Zacks Rank of 1. The company is slated to release earnings figures on Feb 19.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Will North America Segment Aid General Motors' (GM) Q4 Earnings?
General Motors’ (GM - Free Report) North American market segment — which contributes a bulk of the company’s overall revenues — is likely to have fueled the company’s fourth-quarter earnings, scheduled for a Feb 10 release before the bell.
(Also Read: General Motors to Report Q4 Earnings: What Lies Ahead? )
Q3 Highlights for GM’s North American Market
In the last reported quarter, wholesale unit volumes in the North American segment totaled 799,000 (which accounts for more than 80% of the total vehicle sales), marginally down 0.25% year over year. Also, vehicles sold in the Unites States totaled 665,192, down 10% year on year. Nonetheless, sales improved sequentially each month within the quarter.
Sales for both Chevrolet Blazer and the Cadillac XT6 climbed 45% each in the third quarter compared with the prior-year quarter. Sales of Buick’s compact SUV, the Envision, jumped 44%. The company’s all-new crossovers — the Chevrolet Trailblazer and Buick Encore GX — continued to gain momentum. Moreover, despite the tight inventory, the company’s large pick-up trucks sold well, especially heavy-duty pickups.
Encouragingly, revenues in the North American segment came in at $29,128 million, higher than the year-ago quarter’s $27,971 million. The region reported an operating income of $4,366 million, higher than the year-ago profit of $3,023 million, reflecting robust customer demand for new vehicles and services, especially the company’s full-size pickups and SUVs.
North American Market to Have Aided GM in Q4
General Motors’ strong and wining product portfolio in North America, led by its full-size pick-up trucks and SUVs, is likely to have performed well during the fourth quarter. In fact, the company witnessed its best fourth-quarter retail sales since 2007, on the outstanding performance of the Chevrolet, GMC and Cadillac models.
Markedly, General Motors’ retail sales in the United States during the December-end quarter jumped to 771,323 vehicles from the prior quarter’s 665,192 vehicles. In fact, total sales for the quarter were up 5 percent year over year. Average transaction prices set record for fourth-quarter and full-year 2020 at $41,886 and $39,229, respectively.
For the second consecutive year, the GMC Sierra witnessed the best fourth quarter, with total deliveries up 14% year on year. The fourth-quarter GMC and Chevrolet deliveries were up 14% and 12%, respectively during this period. Chevrolet Silverado crew cabs marked the best quarter and calendar-year retail and total sales ever, and the Chevrolet Traverse recorded the best-ever fourth-quarter total and retail sales. Seven of every 10 full-size SUV retail units sold in the fourth quarter were a Chevrolet Tahoe, Suburban or GMC Yukon chiefly owing to robust demand for all-new models.
Cadillac, in fact, registered the best fourth-quarter retail share and sales since 2016. Retail deliveries were up 16% during the October-December quarter, backed by the successful launches of CT4, CT5 and Escalade.
Evidently, the Zacks Consensus Estimate for fourth-quarter automotive revenues in the North American segment is pegged at $28,547 million, suggesting a jump from the $22,706 million recorded in the fourth quarter of 2019. Remarkably, the consensus mark for the operating income from the said segment is pinned at $2,975 million, indicating skyrocketing growth of 1,031% from the prior-year figure. Importantly, the consensus mark for wholesale volumes in the said segment is 821,000 units, calling for a year-on-year jump of 20%.
We believe, stellar revenues from the North American segment are likely to have fueled the Zacks Rank #3 (Hold) company’s fourth-quarter bottom line, partly offset by declining revenues from the International markets.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Here are a few other stocks lined up to release fourth-quarter results in February. Encouragingly, our model predicts an earnings beat for these stocks:
BorgWarner (BWA - Free Report) has an Earnings ESP of +2.94% and carries a Zacks Rank #3, currently. The company is scheduled to report quarterly numbers on Feb 11.
Allison Transmission Holdings (ALSN - Free Report) has an Earnings ESP of +7.44% and carries a Zacks Rank #3 at present. The company will announce fourth-quarter 2020 results on Feb 17.
Magna International (MGA - Free Report) has an Earnings ESP of +5.42% and currently flaunts a Zacks Rank of 1. The company is slated to release earnings figures on Feb 19.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>