GM CEO and Chairman Mary Barra speaks during an “EV Day” on March 4, 2020 on the technology and design campus of the company in Warren, Michigan, a suburb of Detroit.
GM
General Motors will report its earnings in the fourth quarter before the clock on Wednesday. This is what Wall Street expects, based on the estimates of average analysts compiled by Refinitiv.
- Custom VPA: $ 1.64
- Revenue: $ 36.12 billion
This would be in line with the unofficial guidance of the company. In November, John Stapleton, then CFO of GM, told Wall Street analysts that GM expects adjusted earnings before tax to be around $ 8.5 billion and $ 9 billion for the second half of the year.
The carmaker reported adjusted earnings of $ 5.3 billion, or $ 2.83 earnings per share, before tax for the third quarter, while saying the fourth quarter would be weaker due to seasonality.
GM reported an adjusted pre-tax profit of $ 105 million in the fourth quarter of 2019 due to a 40-day strike that affected vehicle production. Revenue was $ 30.8 billion during the quarter.
Wall Street is also asking CEO Mary Barra and other executives for insight into a number of other issues – from 2021 guidance and possible recovery of dividends to updates on the company’s full electric and autonomous vehicle plans.
Wall Street analysts will also want to know how a global shortage of semiconductor chips is expected to affect the carmaker in 2021. Ford’s competitor, Ford Motor, said last week that the deficit could reduce its earnings by $ 1 billion to $ 2.5 billion this year.
Barclays analyst Brian Johnson said in a statement to investors on Monday that the company expects GM to offer a cautious outlook for 2021 due to the shortage of semiconductor chips.
GM’s shares have risen more than 30% so far this year, led by optimism about its full electric vehicle plans and new technologies.
This story unfolds. Check back for updates.