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General Motors (GM) Q2 Earnings Top Estimates on GMNA Strength
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General Motors (GM - Free Report) reported second-quarter 2024 adjusted earnings of $3.06 per share, which surpassed the Zacks Consensus Estimate of $2.67. The bottom line also increased from the year-ago quarter’s level of $1.91. Solid results from the GMNA segment led to the outperformance. Revenues of $47.97 billion beat the Zacks Consensus Estimate of $44.94 billion and increased from $44.75 billion recorded in the year-ago period.
The U.S. auto giant recorded adjusted earnings before interest and taxes (EBIT) of $4.4 billion, higher than $3.2 billion in the prior-year quarter. The automaker’s share in the GM market was 8.4% in the reported quarter compared with 9.1% in the year-ago quarter.
General Motors Company Price, Consensus and EPS Surprise
GM North America (“GMNA”) generated net revenues of $40.7 billion, up from $37.2 billion recorded in the corresponding period of 2023. The figure also outpaced our model projection of $37.5 billion on higher-than-expected deliveries. Wholesale vehicle sales in the GMNA unit totaled 903,000 units, up from 833,000 units reported in the year-ago quarter. The figure also surpassed our estimate of 845,000 units. The segment’s operating profit totaled $4.43 billion, up from $3.19 billion recorded in the year-earlier period. The metric also exceeded our estimate of $3.37 billion.
GM International's (“GMI”) net revenues in the reported quarter amounted to $3.3 billion, down from the year-ago quarter’s $3.95 billion. The metric also missed our estimate of $3.67 billion. The segment’s wholesale vehicle sales of 140,000 units decreased from 147,000 units in the year-ago quarter. GMI reported an operating profit of $50 million, lower than the profit of $236 million generated in the year-ago period. Our estimate was an operating profit of $147 million.
GM Financial generated net revenues of $3.92 billion in the quarter, up from $3.5 billion recorded in the year-ago period and ahead of our prediction of $3.55 billion. The segment recorded an EBIT-adjusted operating profit of $822 million, up from $766 million recorded in the year-ago period. The metric surpassed our prediction of $689 million.
GM Cruise recorded net revenues of $25 million in the second quarter compared with $26 million recorded in the corresponding quarter of 2023. The metric came in line with our projection. The segment posted an operating loss of $458 million, narrower than a loss of $611 million reported in the prior-year quarter. The reported loss was, however, wider than our estimate of a loss of $432 million.
Financial Position
General Motors had cash and cash equivalents of $22.5 billion as of Jun 30, 2024. The long-term automotive debt at the end of the quarter was $15.4 billion. Net automotive cash provided by operating activities amounted to $7.7 billion during the quarter under review. The company recorded an adjusted automotive free cash flow of $5.3 billion in the second quarter of 2024.
GM declared its third-quarter dividend of 12 cents per share. The dividend will be paid out on Sep 19 to shareholders of record as of Sep 6, 2024.
2024 Guidance Raised
For full-year 2024, GM now expects adjusted EBIT in the range of $13-$15 billion, up from $12.5-$14.5 billion guided earlier. Adjusted EPS is anticipated in the range of $9.5-$10.5, up from $9-$10, guided earlier. Adjusted automotive free cash flow is expected in the band of $9.5-$11.5 billion, higher than the prior forecast of $8.5-$10.5 billion.
Zacks Rank & Key Picks
General Motors currently carries a Zacks Rank #3 (Hold). Better-ranked players in the auto market include Honda (HMC - Free Report) , Allison Transmission (ALSN - Free Report) and BorgWarner (BWA - Free Report) . While HMC sports a Zacks Rank #1 (Strong Buy), ALSN and BWA carry a Zacks Rank #2 (Buy) each.
The Zacks Consensus Estimate for HMC’s fiscal 2025 and 2026 EPS has moved up by 4 cents each in the past seven days. The Japanese auto biggie surpassed earnings estimates in the trailing four quarters, with the average surprise being 66.6%.
The Zacks Consensus Estimate for ALSN’s 2024 and 2025 EPS implies a year-over-year uptick of 4% and 12.5%, respectively. The automotive equipment supplier surpassed earnings estimates in the trailing four quarters, with the average surprise being 14.3%.
The Zacks Consensus Estimate for BWA’s 2024 and 2025 EPS implies a year-over-year increase of 8% and 14.6%, respectively. The automotive equipment supplier surpassed earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 10.3%.
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General Motors (GM) Q2 Earnings Top Estimates on GMNA Strength
General Motors (GM - Free Report) reported second-quarter 2024 adjusted earnings of $3.06 per share, which surpassed the Zacks Consensus Estimate of $2.67. The bottom line also increased from the year-ago quarter’s level of $1.91. Solid results from the GMNA segment led to the outperformance. Revenues of $47.97 billion beat the Zacks Consensus Estimate of $44.94 billion and increased from $44.75 billion recorded in the year-ago period.
The U.S. auto giant recorded adjusted earnings before interest and taxes (EBIT) of $4.4 billion, higher than $3.2 billion in the prior-year quarter. The automaker’s share in the GM market was 8.4% in the reported quarter compared with 9.1% in the year-ago quarter.
General Motors Company Price, Consensus and EPS Surprise
General Motors Company price-consensus-eps-surprise-chart | General Motors Company Quote
Segmental Performance
GM North America (“GMNA”) generated net revenues of $40.7 billion, up from $37.2 billion recorded in the corresponding period of 2023. The figure also outpaced our model projection of $37.5 billion on higher-than-expected deliveries. Wholesale vehicle sales in the GMNA unit totaled 903,000 units, up from 833,000 units reported in the year-ago quarter. The figure also surpassed our estimate of 845,000 units. The segment’s operating profit totaled $4.43 billion, up from $3.19 billion recorded in the year-earlier period. The metric also exceeded our estimate of $3.37 billion.
GM International's (“GMI”) net revenues in the reported quarter amounted to $3.3 billion, down from the year-ago quarter’s $3.95 billion. The metric also missed our estimate of $3.67 billion. The segment’s wholesale vehicle sales of 140,000 units decreased from 147,000 units in the year-ago quarter. GMI reported an operating profit of $50 million, lower than the profit of $236 million generated in the year-ago period. Our estimate was an operating profit of $147 million.
GM Financial generated net revenues of $3.92 billion in the quarter, up from $3.5 billion recorded in the year-ago period and ahead of our prediction of $3.55 billion. The segment recorded an EBIT-adjusted operating profit of $822 million, up from $766 million recorded in the year-ago period. The metric surpassed our prediction of $689 million.
GM Cruise recorded net revenues of $25 million in the second quarter compared with $26 million recorded in the corresponding quarter of 2023. The metric came in line with our projection. The segment posted an operating loss of $458 million, narrower than a loss of $611 million reported in the prior-year quarter. The reported loss was, however, wider than our estimate of a loss of $432 million.
Financial Position
General Motors had cash and cash equivalents of $22.5 billion as of Jun 30, 2024. The long-term automotive debt at the end of the quarter was $15.4 billion. Net automotive cash provided by operating activities amounted to $7.7 billion during the quarter under review. The company recorded an adjusted automotive free cash flow of $5.3 billion in the second quarter of 2024.
GM declared its third-quarter dividend of 12 cents per share. The dividend will be paid out on Sep 19 to shareholders of record as of Sep 6, 2024.
2024 Guidance Raised
For full-year 2024, GM now expects adjusted EBIT in the range of $13-$15 billion, up from $12.5-$14.5 billion guided earlier. Adjusted EPS is anticipated in the range of $9.5-$10.5, up from $9-$10, guided earlier. Adjusted automotive free cash flow is expected in the band of $9.5-$11.5 billion, higher than the prior forecast of $8.5-$10.5 billion.
Zacks Rank & Key Picks
General Motors currently carries a Zacks Rank #3 (Hold). Better-ranked players in the auto market include Honda (HMC - Free Report) , Allison Transmission (ALSN - Free Report) and BorgWarner (BWA - Free Report) . While HMC sports a Zacks Rank #1 (Strong Buy), ALSN and BWA carry a Zacks Rank #2 (Buy) each.
The Zacks Consensus Estimate for HMC’s fiscal 2025 and 2026 EPS has moved up by 4 cents each in the past seven days. The Japanese auto biggie surpassed earnings estimates in the trailing four quarters, with the average surprise being 66.6%.
The Zacks Consensus Estimate for ALSN’s 2024 and 2025 EPS implies a year-over-year uptick of 4% and 12.5%, respectively. The automotive equipment supplier surpassed earnings estimates in the trailing four quarters, with the average surprise being 14.3%.
The Zacks Consensus Estimate for BWA’s 2024 and 2025 EPS implies a year-over-year increase of 8% and 14.6%, respectively. The automotive equipment supplier surpassed earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 10.3%.
You can see the complete list of today’s Zacks #1 Rank stocks here