General Motors GM is scheduled to announce its fourth-quarter 2023 results on Jan 30, before the market opens. Analysts are estimating the quarter’s earnings to be $1.09 per share and revenues to be $43.34 billion.
The Zacks Consensus Estimate for General Motors’ Q4 earnings per share has been adjusted upwards by 3 cents in the past seven days. The prediction points to a 48.58% year-over-year decrease in earnings and a 6.42% fall in revenues.
In the previous quarter, GM surpassed earnings estimates with higher-than-expected profits from the GM North America (“GMNA”), GM International (“GMI”), and GM Financial segments. Over the last four quarters, the company consistently outperformed the Zacks Consensus Estimate, averaging at 23.82% as shown in the graph below:
General Motors Company Price and EPS Surprise
General Motors Company price-eps-surprise | General Motors Company Quote
Market Dynamics
General Motors’ Q4 sales in the United States saw a 0.3% year-over-year increase, with positive performance from the Buick brand and higher total Silverado and Sierra sales. However, sales in the Chinese market experienced a decline, primarily affecting sales across the Chevrolet, Buick, and Cadillac brands.
The company’s operating income from the GMNA and GMI segments is projected to undergo both declines and increases, respectively. Expected sales from the GM Financial segment and the autonomous driving unit, Cruise, also portray varying trends. Furthermore, GM is set to initiate a cost-reduction plan to further improve its financial standing.
Earnings Expectations
Analysts predict that General Motors will exceed earnings expectations, supported by a positive Earnings ESP and a favorable Zacks Rank. The company has an Earnings ESP of +3.47%, backed by an optimistic Most Accurate Estimate, exceeding the Zacks Consensus Estimate by 3 cents.
Zacks Rank: General Motors currently holds a Zacks Rank #2.
Peer Insights
Several other players in the auto industry are also expected to post favorable earnings this quarter. Companies such as Lear Corporation, Ford Motor Company, and BorgWarner Inc. have all demonstrated a favorable combination for an earnings beat, as per the Zacks model.
Stay informed with upcoming earnings announcements through the Zacks Earnings Calendar.
