General Motors Earnings Preview: What to Expect
As the automotive giant prepares to release its fourth-quarter earnings, investors are eagerly anticipating the results. With revenue expected to increase by 2.2% and adjusted earnings per share jumping by 52.4%, General Motors is poised to deliver a strong performance.
A Strong Finish to 2023
In the same quarter last year, GM reported $42.98 billion in revenue, net income attributable to stockholders of $2.1 billion, and adjusted earnings before interest and taxes of $1.76 billion. This year’s results are expected to surpass these figures, demonstrating the company’s continued growth and resilience.
Guidance for 2025: A Key Focus
While the quarterly results will undoubtedly be closely watched, investors will also be keenly focused on GM’s guidance for 2025. The company previously indicated that it expected its 2025 adjusted earnings to be in a similar range to its 2024 results. However, this guidance was provided before the announcement of the Cruise autonomous vehicle operations’ disbanding and increased regulatory uncertainty surrounding all-electric vehicle incentives and potential tariffs.
A Shift in Focus
GM’s 2024 adjusted earnings before interest and taxes target was set between $13 billion and $15 billion, or between $9.50 and $10.50 per share. This represents a significant increase from the previous guidance of between $12.5 billion and $14.5 billion, or between $9 and $10 per share. As the company navigates the evolving automotive landscape, investors will be looking for updates on its restructuring in China, its partnership with Hyundai Motor, and any changes to its EV plans.
Investor Sentiment
Despite being a favorite among Wall Street analysts in 2024, with share prices soaring 48%, GM’s stock has remained relatively flat to begin 2025. However, many expect the company to outperform expectations, and an upgrade by Deutsche Bank to “buy” from “hold” last week may signal a shift in investor sentiment.
Stay Tuned for Updates
As General Motors prepares to release its earnings, investors will be watching closely for any updates or changes to the company’s strategy. With the automotive industry undergoing significant transformations, GM’s ability to adapt and innovate will be crucial to its continued success.
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