General Motors GM is set to uncover its fourth-quarter 2023 results on Jan 30, before the market opens. Analysts have pegged the Zacks Consensus Estimate for the quarter’s earnings and revenues at $1.09 per share and $43.34 billion, respectively.
The Zacks Consensus Estimate for General Motors’ fourth-quarter earnings per share has been on the rise, reaching $1.09, reflecting a decreased year-over-year earnings of 48.58%. Meanwhile, the anticipated revenue of $43.34 billion indicates a 6.42% decrease year over year.
In the most recent quarter, GM exceeded earnings expectations, driven by higher-than-expected profits from the GM North America (“GMNA”), GM International (“GMI”), and GM Financial segments. Over the last four quarters, the company has consistently outperformed the Zacks Consensus Estimate, with an average of 23.82%.
General Motors Company Price and EPS Surprise
General Motors Company price-eps-surprise | General Motors Company Quote
Factors Affecting Performance
Fourth-quarter sales in the United States witnessed a 0.3% year-over-year increase to 625,176 units. Buick brand sales soared 57% and total Silverado sales increased to 143,390 units from 141,912 units in the year-ago period. On the other hand, sales in China, the world’s largest auto market, observed a year-over-year decline. In China, General Motors sold 568,850 vehicles during the fourth quarter of 2023, down 1% year over year. Sales across several brands fell, but Wuling & Baojun experienced notable increases.
Operating income from the GMNA segment is expected to dip by 8% year over year, partly due to the effects of the United Auto Workers strike that lasted for six weeks. On a brighter note, operating income from the GMI segment (excluding GM China joint venture) is projected to rise by 13.9% year over year, with an expected expansion of the operating margin. The sales from the GM Financial unit are expected to climb by 7.9% year over year, whereas sales from GM’s autonomous driving unit, Cruise, are projected to remain steady at $25 million.
Building on the success of a previous cost-reduction plan, General Motors aims to further decrease costs by $1 billion over 2023 to 2024, with a potential positive impact on fourth-quarter margins.
Earnings Whispers
Analysts anticipate an earnings beat for General Motors in the upcoming quarter based on a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold).
Earnings ESP: An Earnings ESP of +3.47% indicates that the Most Accurate Estimate of $1.12 per share is 3 cents higher than the Zacks Consensus Estimate. You can find 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 #2.
Other Players to Watch
Other companies in the auto industry, such as Lear Corporation LEA, Ford Motor Company F, and BorgWarner Inc. BWA also show promise for an earnings beat this quarter.
Zacks Earnings Calendar provides the latest updates on upcoming earnings announcements.