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What to Expect From General Motors (GM) This Earnings Season
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General Motors (GM - Free Report) is slated to release fourth-quarter 2021 results on Feb 1, after market close. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $1.15 per share and $29.22 billion, respectively.
The Zacks Consensus Estimate for General Motors’ fourth-quarter earnings per share has been revised upward by 11 cents over the past seven days. The bottom-line projection, however, indicates a year-over-year decline of 44.5%. Meanwhile, over the trailing four quarters, the company topped the Zacks Consensus Estimate on all occasions, with the average being 46.5%. This is depicted in the graph below:
Investors are keeping their fingers crossed for an earnings beat for fourth-quarter 2021 as well. Encouragingly, our model also predicts that GM is set to maintain its earnings beat streak.
Earnings Whispers
Our proven model predicts an earnings beat for General Motors this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: It has an Earnings ESP of +8.60%. This is because the Most Accurate Estimate of $1.25 cents per share is pegged 10 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
General Motors’ U.S. sales came in at 440,745 vehicles in the fourth quarter, down 43% and 1.4% on a yearly and sequential basis, respectively. This was due to limited vehicle supply amid chip crunch, which couldn’t keep pace with the mounting vehicle demand. Nevertheless, high average prices of vehicles amid tight inventories are anticipated to have aided Q4 revenues. The Zacks Consensus Estimate for General Motors’ overall Q4 revenues is pegged at $29,220 million, indicating an increase from $26,779 million generated in Q3.
In China, General Motors delivered more than 740,000 vehicles in the fourth quarter, higher than 623,000 vehicles in the third quarter. High deliveries of GM’s Hong Guang MINI EV in China are expected to have aided sales.
While high commodity costs, a tough labor market and logistical challenges might have played spoilsports, the rising prices of vehicles and sequential sales volume growth in China — where General Motors commands a significant presence — are likely to have offset the headwinds to a large extent.
Other Stocks to Consider
Here are some other firms in the auto space, which, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
Cummins (CMI - Free Report) has an Earnings ESP of +1.26% and a Zacks Rank #3. The stock is set to report fourth-quarter 2021 earnings on Feb 3.
The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $3.07 per share and $5.80 billion, respectively. In the trailing four quarters, CMI surpassed earnings estimates on three occasions and missed on the other, with the average surprise being 8%.
BorgWarner (BWA - Free Report) has an Earnings ESP of +3.92% and a Zacks Rank #3. The stock is set to report fourth-quarter 2021 earnings on Feb 15.
The Zacks Consensus Estimate for BorgWarner’s to-be-reported quarter’s earnings and revenues is pegged at 72 cents per share and $3.38 billion, respectively. BWA surpassed earnings estimates in the trailing four quarters, with the average being 30.9%
Genuine Parts (GPC - Free Report) has an Earnings ESP of +0.31% and a Zacks Rank #2. The stock is set to report fourth-quarter 2021 earnings on Feb 17.
The Zacks Consensus Estimate for Genuine Parts’ to-be-reported quarter’s earnings and revenues is pegged at $1.60 per share and $4.66 billion, respectively. GPC surpassed earnings estimates in the trailing four quarters, with the average being 16%.
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What to Expect From General Motors (GM) This Earnings Season
General Motors (GM - Free Report) is slated to release fourth-quarter 2021 results on Feb 1, after market close. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $1.15 per share and $29.22 billion, respectively.
The Zacks Consensus Estimate for General Motors’ fourth-quarter earnings per share has been revised upward by 11 cents over the past seven days. The bottom-line projection, however, indicates a year-over-year decline of 44.5%. Meanwhile, over the trailing four quarters, the company topped the Zacks Consensus Estimate on all occasions, with the average being 46.5%. This is depicted in the graph below:
General Motors Company Price and EPS Surprise
General Motors Company price-eps-surprise | General Motors Company Quote
Investors are keeping their fingers crossed for an earnings beat for fourth-quarter 2021 as well. Encouragingly, our model also predicts that GM is set to maintain its earnings beat streak.
Earnings Whispers
Our proven model predicts an earnings beat for General Motors this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: It has an Earnings ESP of +8.60%. This is because the Most Accurate Estimate of $1.25 cents per share is pegged 10 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: General Motors currently flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at Play
General Motors’ U.S. sales came in at 440,745 vehicles in the fourth quarter, down 43% and 1.4% on a yearly and sequential basis, respectively. This was due to limited vehicle supply amid chip crunch, which couldn’t keep pace with the mounting vehicle demand. Nevertheless, high average prices of vehicles amid tight inventories are anticipated to have aided Q4 revenues. The Zacks Consensus Estimate for General Motors’ overall Q4 revenues is pegged at $29,220 million, indicating an increase from $26,779 million generated in Q3.
In China, General Motors delivered more than 740,000 vehicles in the fourth quarter, higher than 623,000 vehicles in the third quarter. High deliveries of GM’s Hong Guang MINI EV in China are expected to have aided sales.
While high commodity costs, a tough labor market and logistical challenges might have played spoilsports, the rising prices of vehicles and sequential sales volume growth in China — where General Motors commands a significant presence — are likely to have offset the headwinds to a large extent.
Other Stocks to Consider
Here are some other firms in the auto space, which, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
Cummins (CMI - Free Report) has an Earnings ESP of +1.26% and a Zacks Rank #3. The stock is set to report fourth-quarter 2021 earnings on Feb 3.
The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $3.07 per share and $5.80 billion, respectively. In the trailing four quarters, CMI surpassed earnings estimates on three occasions and missed on the other, with the average surprise being 8%.
BorgWarner (BWA - Free Report) has an Earnings ESP of +3.92% and a Zacks Rank #3. The stock is set to report fourth-quarter 2021 earnings on Feb 15.
The Zacks Consensus Estimate for BorgWarner’s to-be-reported quarter’s earnings and revenues is pegged at 72 cents per share and $3.38 billion, respectively. BWA surpassed earnings estimates in the trailing four quarters, with the average being 30.9%
Genuine Parts (GPC - Free Report) has an Earnings ESP of +0.31% and a Zacks Rank #2. The stock is set to report fourth-quarter 2021 earnings on Feb 17.
The Zacks Consensus Estimate for Genuine Parts’ to-be-reported quarter’s earnings and revenues is pegged at $1.60 per share and $4.66 billion, respectively. GPC surpassed earnings estimates in the trailing four quarters, with the average being 16%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.