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General Motors Company (GM), headquartered in Detroit, Michigan, is a leading automobile company that designs, manufactures, and markets cars, trucks, gas-powered pickups, SUVs, and automobile parts as well as provides software-enabled services and subscriptions. Valued at $58.9 billion by market cap, the company offers a broad range of vehicle portfolio under the Buick, Cadillac, Chevrolet, and GMC brand names as well as a range of EVs and also offers after-sales services through its dealer network. The auto giant is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Tuesday, Jan. 28.
Ahead of the event, analysts expect GM to report a profit of $1.75 per share on a diluted basis, up 41.1% from $1.24 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect GM to report EPS of $10.34, up 34.6% from $7.68 in fiscal 2023. Its EPS is expected to rise 4% year over year to $10.75 in fiscal 2025.
GM stock has outperformed the S&P 500’s ($SPX) 27.2% gains over the past 52 weeks, with shares up 48.7% during this period. Similarly, it outperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY)31.4% gains over the same time frame.
GM's strong performance can be attributed to its compelling vehicle lineup, robust demand for pickups and SUVs, and successful cost-cutting efforts. Notably, the company achieved variable cost profitability on EVs and aims for broader profitability by Q4.
On Oct. 22, GM shares closed up more than 9% after reporting its Q3 results. Its adjusted EPS of $2.96 surpassed Wall Street expectations of $2.49. The company’s revenue was $48.8 billion, beating Wall Street forecasts of $44 billion. GM expects full-year adjusted EPS in the range of $10 to $10.50.
Analysts’ consensus opinion on GM stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 23 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy,” 11 give a “Hold,” and two recommend a “Strong Sell.” GM’s average analyst price target is $57.30, indicating a potential upside of 7% from the current levels.
