Mary Barra, CEO, GM on the NYSE, November 17, 2022.
Source: NYSE
DETROIT — General Motors is about to report its second-quarter earnings earlier than the bell Tuesday.
The Detroit automaker is predicted to report strong outcomes, pushed by favorable business developments of excessive costs on new autos and elevated gross sales and manufacturing.
Here’s what Wall Street is anticipating, in accordance with Refinitiv consensus estimates:
- Adjusted earnings per share: $1.85
- Revenue: $42.64 billion
Those outcomes would mark sharp year-over-year will increase of roughly 62% in adjusted EPS and 19% in income.
Some Wall Street analysts consider GM may elevate its steerage for a second time this 12 months on the again of stronger-than-expected gross sales and car pricing for the second quarter. But the corporate could stay conservative on account of potential challenges throughout the second half of the 12 months, together with softening costs and contract negotiations with the United Auto Workers union.
GM beforehand issued 2023 forecasts of adjusted earnings between $11 billion and $13 billion, or $6.35 to $7.35 a share, and adjusted automotive free money circulation between $5.5 billion and $7.5 billion. Net revenue is predicted to be $8.4 billion to $9.9 billion.
When reporting its first-quarter ends in April, the automaker elevated its adjusted earnings steerage and free money circulation however lowered its forecasted web revenue on account of $875 million in particular fees associated to a beforehand introduced worker buyout program throughout the quarter.
Shares of GM are up roughly 16% this 12 months. They closed Monday at $39.30 per share — off from a 52-week excessive of $43.63 per share, notched in February.
GM shares
Aside from earnings, buyers can be keen to listen to any updates concerning plans for GM’s new electrical autos for the rest of the 12 months, together with all-electric variations of the corporate’s Chevrolet Blazer and Equinox crossovers and Silverado pickup truck. The firm additionally is about to disclose an all-electric model of its flagship Cadillac Escalade SUV.
The automaker additionally could give extra insights concerning what are anticipated to be difficult contract negotiations with the UAW. Buoyed by a yearslong nationwide labor motion, new management and document firm income, the negotiations are anticipated to be among the many most contentious in current reminiscence.
The talks formally kicked off earlier this month between the union and GM, Ford Motor and Stellantis.
“The recently launched UAW negotiations are a critical focal point for Ford and GM in 2H,” Barclays analyst Dan Levy stated Monday in an investor word.
During the final spherical of bargaining in 2019, a breakdown in negotiations between GM and UAW led to a nationwide 40-day strike in opposition to the corporate. GM has stated the strike price it about $3.6 billion that 12 months.
The present contracts are set to run out Sept. 14. The offers cowl roughly 150,000 UAW members who work for the automakers.
This story is creating. Please test again for updates.
Source: www.cnbc.com”