Automotive manufacturer General Motors (NYSE:GM) will be reporting earnings tomorrow before market hours. Here’s what to look for.
General Motors beat analysts’ revenue expectations by 5.9% last quarter, reporting revenues of $47.97 billion, up 7.2% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ operating margin estimates and EPS estimates.
Is General Motors a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting General Motors’s revenue to be flat year on year at $44.38 billion, slowing from the 5.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.40 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 4 downward revisions over the last 30 days (we track 11 analysts). General Motors has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4.1% on average.
Looking at General Motors’s peers in the industrials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 2.2%, beating analysts’ expectations by 8.7%, and Byrna reported revenues up 194%, in line with consensus estimates. Richardson Electronics traded down 2.5% following the results while Byrna was also down 18.4%.
Read our full analysis of Richardson Electronics’s results here and Byrna’s results here.
There has been positive sentiment among investors in the industrials segment, with share prices up 3.3% on average over the last month. General Motors is up 2.5% during the same time and is heading into earnings with an average analyst price target of $55.53 (compared to the current share price of $49.23).
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