GM earnings: What investors should watch for
01/30/2024 09:20
General Motors (GM) is set to report earnings on Tuesday, with several key factors likely to impact results. GM previously lowered its full-year EBIT-adjusted profit guidance due to the UAW strike, which also constrained production, weighing on sales and profits. Yahoo Finance's Pras Subramanian breaks down the details on what to expect from the automaker's earnings call. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith
General Motors (GM) is set to report earnings on Tuesday, with several key factors likely to impact results. GM previously lowered its full-year EBIT-adjusted profit guidance due to the UAW strike, which also constrained production, weighing on sales and profits.
Yahoo Finance's Pras Subramanian breaks down the details on what to expect from the automaker's earnings call.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Angel Smith
Video Transcript
- General Motors among the companies reporting earnings ahead of the open on Tuesday. Here with more on what to expect is Pras Subramanian. The shares up a little bit today, but what are people looking for?
PRAS SUBRAMANIAN: Yeah. GM brought down their forecast for 2023 adjusted EBITDA profit because of that strike that affected the first month of production there. So we saw them come down from $11.7 to $12.7 billion from $12 to $14 billion, see if they hit that upper or lower bound of that range and see what they say for next year. Let's see what the new targets are going to be.
Speaking of that, the Q4 revenue can be slightly down compared to last year. We had production was not affected so tremendously because they built up a lot of inventory to make up for that. So we'll see what they're going to say about that. EPS $1.16 a share adjusted, so we'll see if that hits that mark there.
One thing that I'm watching was cruise. So we had a lot of hiccups there with the cruise automation, their AV unit there, had a wholesale cleanout of their management, right? New tech there, how they're going to, what are they aiming for next for their autonomous ambitions. And they revealed a couple of days ago a DOJ and SEC investigation into what happened not just with the actual accident but also aftermath of it, how did executives ask. So that's a big deal.