What You Need to Know Ahead of General Motors’ Earnings Release

General Motors Company  truck by- dennizn via Shutterstock

With a market cap of $43.4 billion, General Motors Company (GM) designs, builds and sells trucks, crossovers, cars, and automobile parts and provides software-enabled services and subscriptions. The Detroit, Michigan-based company operates through GM North America, GM International, Cruise, and GM Financial segments.

The automotive manufacturer is expected to release its Q1 2025 earnings before the market opens on Tuesday, Apr. 29. Ahead of this event, analysts expect GM to post adjusted earnings of $2.63 per share, representing a marginal increase from $2.62 per share reported in the same quarter last year. On a more positive note, the company has surpassed the Street's bottom-line estimates in each of the past four quarters.

Meanwhile, for fiscal 2025, analysts expect General Motors to report an adjusted EPS of $11.51, marking an increase of 8.6% from $10.60 reported in fiscal 2024. In fiscal 2026, its earnings are expected to grow nearly 3% year-over-over $11.85 per share.

www.barchart.com

Shares of GM have gained 4.8% over the past 52 weeks, slightly underperforming the S&P 500 Index's ($SPX5.5% uptick and the Consumer Discretionary Select Sector SPDR Fund’s (XLY7.4% returns during the same time frame.

www.barchart.com

Despite reporting better-than-expected Q4 2024 results on Jan. 28, the shares of General Motors fell by a massive 8.9%. Both its revenues and earnings surpassed Wall Street expectations, with topline rising 11% year-over-year to $47.7 billion and adjusted EPS surging 54.8% to $1.92. However, its GAAP-based net income was severely impacted by $4 billion non-cash restructuring charges & impairment of its interest in certain Chinese Joint Ventures and half a billion-dollar charges related to its decision to stop the funding for its Cruise robotaxi business. During Q4, GM's net income was reduced by more than $5 billion by such special charges. Leading to a net loss of approximately $3 billion to shareholders on a GAAP basis, down from the $2.1 billion net income reported in Q4 2023.

Nonetheless, analysts' consensus view on GM is moderately optimistic, with a "Moderate Buy" rating overall. Among 24 analysts covering the stock, 10 suggest a "Strong Buy," one gives a "Moderate Buy," 10 recommend a "Hold,” and three give a “Strong Sell” rating. Its mean price target of $58.10 represents a 28.7% premium to current price levels.


On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.