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Common Motors (GM) earnings Q2 2023

Mary Barra, CEO, GM on the NYSE, November 17, 2022.

Supply: NYSE

DETROIT — General Motors is about to report its second-quarter earnings earlier than the bell Tuesday.

The Detroit automaker is predicted to report stable outcomes, pushed by favorable trade developments of excessive costs on new automobiles and elevated gross sales and manufacturing.

This is what Wall Road is anticipating, in line with Refinitiv consensus estimates:

  • Adjusted earnings per share: $1.85
  • Income: $42.64 billion

These outcomes would mark sharp year-over-year will increase of roughly 62% in adjusted EPS and 19% in income.

Some Wall Road analysts consider GM may increase its steerage for a second time this 12 months on the again of stronger-than-expected gross sales and automobile pricing for the second quarter. However the firm might stay conservative attributable to potential challenges throughout the second half of the 12 months, together with softening costs and contract negotiations with the United Auto Workers union.

GM beforehand issued 2023 forecasts of adjusted earnings between $11 billion and $13 billion, or $6.35 to $7.35 a share, and adjusted automotive free money stream between $5.5 billion and $7.5 billion. Internet revenue is predicted to be $8.4 billion to $9.9 billion.

When reporting its first-quarter results in April, the automaker elevated its adjusted earnings steerage and free money stream however lowered its forecasted internet revenue attributable to $875 million in particular prices associated to a beforehand introduced employee buyout program throughout the quarter.

Shares of GM are up roughly 16% this 12 months. They closed Monday at $39.30 per share — off from a 52-week excessive of $43.63 per share, notched in February.

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Except for earnings, buyers will probably be keen to listen to any updates concerning plans for GM’s new electrical automobiles for the rest of the 12 months, together with all-electric variations of the corporate’s Chevrolet Blazer and Equinox crossovers and Silverado pickup truck. The corporate additionally is about to disclose an all-electric model of its flagship Cadillac Escalade SUV.

The automaker additionally might give extra insights concerning what are anticipated to be difficult contract negotiations with the UAW. Buoyed by a yearslong nationwide labor motion, new management and report firm earnings, the negotiations are anticipated to be among the many most contentious in current reminiscence.

The talks formally kicked off earlier this month between the union and GM, Ford Motor and Stellantis.

“The lately launched UAW negotiations are a vital focus for Ford and GM in 2H,” Barclays analyst Dan Levy stated Monday in an investor observe.

Over the last spherical of bargaining in 2019, a breakdown in negotiations between GM and UAW led to a nationwide 40-day strike towards the corporate. GM has stated the strike cost it about $3.6 billion that 12 months.

The present contracts are set to run out Sept. 14. The offers cowl roughly 150,000 UAW members who work for the automakers.

This story is growing. Please examine again for updates.

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