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General Motors (GM) Gears Up for Q2 Earnings: Things to Note
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General Motors (GM - Free Report) is slated to release second-quarter 2023 results on Jul 25, before market open. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $1.66 per share and $42.46 billion, respectively.
The Zacks Consensus Estimate for General Motors’ second-quarter earnings per share has been revised upward by 2 cents over the past 30 days. The bottom-line projection also indicates a year-over-year increase of 45.6%. The top-line estimate implies year-over-year growth of 18.7%.
In the last reported quarter, GM topped earnings estimates on better-than-expected profits from the North America, International and Financial segments. Over the trailing four quarters, the company topped the Zacks Consensus Estimate on three occasions and missed once, with the average being 15.5%. This is depicted in the graph below:
Our proven model predicts an earnings beat for General Motors this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here.
Earnings ESP: It has an Earnings ESP of +9.37%. This is because the Most Accurate Estimate of $1.81 per share is pegged 15 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: General Motors currently carries a Zacks Rank of 3.
General Motors’ U.S. sales came in at 691,978 new vehicles in the to-be-reported quarter, up from 582,401 vehicles during the second quarter of 2022, thanks to easing supply chain issues and continued demand for its vehicles despite high costs of vehicle financing. Deliveries of Chevrolet, GMC, Buick and Cadillac brands surged 17%,18%, 48% and 15%, respectively.
In China, General Motors sold 526,200 vehicles during the second quarter of 2023, up 9% year over year. It recorded double-digit growth in Chevrolet and Cadillac brands. The U.S. legacy automaker delivered 115,000 new energy vehicles (NEVs) in China during the second quarter of 2023, setting a new record.
The Zacks Consensus Estimate for General Motors’ total automotive revenues in the second quarter of 2023 is pegged at $39.04 billion, up from $32.61 billion reported in the year-ago quarter. Our estimate for the same is $37.7 billion. The Zacks Consensus Estimate for total automotive operating income stands at $3,410 million, suggesting growth from $2,508 million generated in the year-ago period. Our estimate for total automotive operating income calls for a year-over-year rise of 9%.
On the flip side, General Motors anticipates lower pension income and weaker contribution from the GM Financial segment in 2023. The Zacks Consensus Estimate for sales from the GM Financial unit is pegged at $3,131 million, down from $3,146 million recorded in the corresponding quarter of 2022. Our estimate for the same is pegged at $3,018.8 million, suggesting a decline of 4% year over year. The consensus mark for operating income from the unit stands at $643 million, reflecting a decline from $1,106 million recorded in the year-ago period. Our estimate for operating profit from the GM financial unit implies a year-over-year decline of 39.1%.
The consensus mark for sales from GM’s autonomous driving unit, Cruise, is pegged at $50 million, implying 100% growth from the year-ago quarter. Our estimate for the same is pegged at $25.1 million. The Zacks Consensus Estimate for operating loss from the Cruise unit is $526 million, narrowing from $605 million incurred in the year-ago period. We expect the unit to incur an operating loss of $526.8 million.
Other Stocks With the Favorable Combination
Here are a few other auto companies, which, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
PACCAR (PCAR - Free Report) has an Earnings ESP of +8.13% and a Zacks Rank #2. The trucking giant is set to report results on Jul 25.
The Zacks Consensus Estimate for PCAR’s to-be-reported quarter’s earnings and revenues is pegged at $2.11 per share and $7.95 billion, respectively. PCAR surpassed earnings estimates in the last four quarters, with the average being 16.6%.
Lear Corporation (LEA - Free Report) has an Earnings ESP of +3.16% and a Zacks Rank #2. The manufacturer of automotive seating and electronic systems is slated to report results on Aug 1.
The Zacks Consensus Estimate for LEA’s to-be-reported quarter’s earnings and revenues is pegged at $3.05 per share and $5.72 billion, respectively. LEA surpassed earnings estimates in the last four quarters, with the average being 15.5%.
Rivian Automotive (RIVN - Free Report) has an Earnings ESP of +6.25% and a Zacks Rank #2. The electric vehicle company is set to report results on Aug 8.
The Zacks Consensus Estimate for RIVN’s to-be-reported quarter’s bottom line and revenues is pegged at a loss of $1.42 per share and $932.3 million, respectively. RIVN surpassed earnings estimates in three of the last four quarters and missed in the other, with the average being 6.08%.
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General Motors (GM) Gears Up for Q2 Earnings: Things to Note
General Motors (GM - Free Report) is slated to release second-quarter 2023 results on Jul 25, before market open. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $1.66 per share and $42.46 billion, respectively.
The Zacks Consensus Estimate for General Motors’ second-quarter earnings per share has been revised upward by 2 cents over the past 30 days. The bottom-line projection also indicates a year-over-year increase of 45.6%. The top-line estimate implies year-over-year growth of 18.7%.
In the last reported quarter, GM topped earnings estimates on better-than-expected profits from the North America, International and Financial segments. Over the trailing four quarters, the company topped the Zacks Consensus Estimate on three occasions and missed once, with the average being 15.5%. This is depicted in the graph below:
General Motors Company Price and EPS Surprise
General Motors Company price-eps-surprise | General Motors Company Quote
Earnings Whispers
Our proven model predicts an earnings beat for General Motors this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here.
Earnings ESP: It has an Earnings ESP of +9.37%. This is because the Most Accurate Estimate of $1.81 per share is pegged 15 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: General Motors currently carries a Zacks Rank of 3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Note
General Motors’ U.S. sales came in at 691,978 new vehicles in the to-be-reported quarter, up from 582,401 vehicles during the second quarter of 2022, thanks to easing supply chain issues and continued demand for its vehicles despite high costs of vehicle financing. Deliveries of Chevrolet, GMC, Buick and Cadillac brands surged 17%,18%, 48% and 15%, respectively.
In China, General Motors sold 526,200 vehicles during the second quarter of 2023, up 9% year over year. It recorded double-digit growth in Chevrolet and Cadillac brands. The U.S. legacy automaker delivered 115,000 new energy vehicles (NEVs) in China during the second quarter of 2023, setting a new record.
The Zacks Consensus Estimate for General Motors’ total automotive revenues in the second quarter of 2023 is pegged at $39.04 billion, up from $32.61 billion reported in the year-ago quarter. Our estimate for the same is $37.7 billion. The Zacks Consensus Estimate for total automotive operating income stands at $3,410 million, suggesting growth from $2,508 million generated in the year-ago period. Our estimate for total automotive operating income calls for a year-over-year rise of 9%.
On the flip side, General Motors anticipates lower pension income and weaker contribution from the GM Financial segment in 2023. The Zacks Consensus Estimate for sales from the GM Financial unit is pegged at $3,131 million, down from $3,146 million recorded in the corresponding quarter of 2022. Our estimate for the same is pegged at $3,018.8 million, suggesting a decline of 4% year over year. The consensus mark for operating income from the unit stands at $643 million, reflecting a decline from $1,106 million recorded in the year-ago period. Our estimate for operating profit from the GM financial unit implies a year-over-year decline of 39.1%.
The consensus mark for sales from GM’s autonomous driving unit, Cruise, is pegged at $50 million, implying 100% growth from the year-ago quarter. Our estimate for the same is pegged at $25.1 million. The Zacks Consensus Estimate for operating loss from the Cruise unit is $526 million, narrowing from $605 million incurred in the year-ago period. We expect the unit to incur an operating loss of $526.8 million.
Other Stocks With the Favorable Combination
Here are a few other auto companies, which, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
PACCAR (PCAR - Free Report) has an Earnings ESP of +8.13% and a Zacks Rank #2. The trucking giant is set to report results on Jul 25.
The Zacks Consensus Estimate for PCAR’s to-be-reported quarter’s earnings and revenues is pegged at $2.11 per share and $7.95 billion, respectively. PCAR surpassed earnings estimates in the last four quarters, with the average being 16.6%.
Lear Corporation (LEA - Free Report) has an Earnings ESP of +3.16% and a Zacks Rank #2. The manufacturer of automotive seating and electronic systems is slated to report results on Aug 1.
The Zacks Consensus Estimate for LEA’s to-be-reported quarter’s earnings and revenues is pegged at $3.05 per share and $5.72 billion, respectively. LEA surpassed earnings estimates in the last four quarters, with the average being 15.5%.
Rivian Automotive (RIVN - Free Report) has an Earnings ESP of +6.25% and a Zacks Rank #2. The electric vehicle company is set to report results on Aug 8.
The Zacks Consensus Estimate for RIVN’s to-be-reported quarter’s bottom line and revenues is pegged at a loss of $1.42 per share and $932.3 million, respectively. RIVN surpassed earnings estimates in three of the last four quarters and missed in the other, with the average being 6.08%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.