Yahoo Finance Key Predictions Ahead of General Motors (GM) Q1 Earnings
General Motors GM is slated to release first-quarter 2024 results on Apr 23, before market open. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $2.06 per share and $40.61 billion, respectively.
The Zacks Consensus Estimate for General Motors’ first-quarter earnings per share has been revised upward by 4 cents in the past 30 days. The bottom-line projection, however, indicates a year-over-year decline of 6.8%. The top-line estimate suggests year-over-year growth of 1.6%.
In the last reported quarter, GM topped earnings estimates on better-than-expected sales in North America. In the trailing four quarters, the company topped the Zacks Consensus Estimate on all occasions, with the average being 19.95%. 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 time around. 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 +7.77%. This is because the Most Accurate Estimate of $2.22 per share is pegged 16 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 2.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at Play
General Motors recorded its best first-quarter retail sales in the United States since 2021. The company’s retail sales in the country rose 6% year over year in the quarter under discussion, buoyed by increased demand. Retail sales at key brands, namely Chevrolet, Cadillac, Buick and GMC, increased 6%, 9%, 10% and 3%, respectively, on a yearly basis.
Our model estimate for revenues from the GMNA segment stands at $33.8 billion, calling for a 3% year-over-year increase. Our projection for revenues from the GMI segment (excluding GM China joint venture) is pegged at $3.9 billion, indicating an increase of 6.3%. We anticipate wholesale shipments from the unit to rise 5.1% year over year. Our estimate for sales from the GM Financial unit is pegged at $3.48 billion, suggesting a year-over-year rise of 4.3%.
Our estimate for sales from GM’s autonomous driving unit, Cruise, is pegged at $25.2 million, almost unchanged from the year-ago figure. We expect the Cruise unit to incur an operating loss of $358 million in the to-be-reported quarter, narrower than $561 million incurred in the year-ago period.
The company’s cost containment efforts bode well for operating profits. GM is focused on reducing fixed costs. It reduced $1.4 billion of fixed costs in 2023 and expects to further cut $1 billion in fixed costs this year. Reduction of complexities across its current and near-term product programs is likely to generate additional savings. These factors spark optimism for the upcoming results.
Other Stocks With Favorable Combination
Here are a few players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time.
Allison Transmission ALSN will release first-quarter 2024 results on Apr 25. The company has an Earnings ESP of +1.27% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ALSN’s to-be-reported quarter’s earnings and revenues is pegged at $1.89 per share and $765 million, respectively. Allison surpassed earnings estimates in each of the trailing four quarters, the average surprise being 19.45%.
PACCAR PCAR will release first-quarter 2024 results on Apr 30. The company has an Earnings ESP of +0.33% and a Zacks Rank #2.
The Zacks Consensus Estimate for PCAR’s to-be-reported quarter’s earnings and revenues is pegged at $2.17 per share and $8.06 billion, respectively. PACCAR surpassed earnings estimates in the trailing four quarters, the average surprise being 17.07%.
American Axle AXL will release first-quarter 2024 results on May 3. The company has an Earnings ESP of +674.43% and a Zacks Rank #3.
The Zacks Consensus Estimate for AXL’s to-be-reported quarter’s earnings and revenues is pegged at 1 cent per share and $1.52 billion, respectively. American Axle surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 0.52%.
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PACCAR Inc. (PCAR) : Free Stock Analysis Report
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General Motors Company (GM) : Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
