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Detroit, Michigan-based General Motors Company (GM) designs, builds, and sells trucks, crossovers, cars, and automobile parts, and provides software-enabled services and subscriptions worldwide. Valued at $53.57 billion by market cap, the company is known for iconic brands like Chevrolet, Cadillac, and GMC. The auto giant is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Tuesday, July 23.
Ahead of the event, analysts expect GM to report a profit of $2.67 per share on a diluted basis, up 39.8% from $1.91 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. In the previous quarter, GM raised its full-year guidance.
For the full year, analysts expect GM to report EPS of $9.43, up 22.8% from $7.68 in fiscal 2023.
GM stock has outperformed the S&P 500’s ($SPX) 15.5% gains on a YTD basis, with shares up 30.7% during this period. Similarly, it outshined the Nasdaq Transportation ETF’s (FTXR) 3.6% gains over the same time frame.
On Apr. 23, GM’s shares closed up more than 4% after reporting Q1 adjusted EPS of $2.62, higher than the consensus estimates of $2.12. The company raised its full-year adjusted EPS estimate to between $9 and $10 from its previous estimate of between $8.50 and $9.50.
GM’s overall performance can be attributed to its share repurchase initiatives and improved full-year guidance. Last month, the company’s Board of Directors approved a new share repurchase program of up to $6 billion of its outstanding common stock. This announcement follows GM’s authorization of a $10 billion accelerated shares repurchase in November 2023.
The consensus opinion on General Motors stock is bullish, with a “Moderate Buy” rating overall. Out of 20 analysts covering the stock, 13 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, five analysts give a “Hold” rating, and one suggests a “Strong Sell” rating.
The average analyst price target for General Motors is $55, indicating a potential upside of 17.1% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
