General Motors (GM) earnings Q3 2020


General Motors CEO Mary Barra speaks to the news media June 12, 2018 in Detroit, Michigan.

Bill Pugliano | Getty Images

General Motors is set to report its third-quarter earnings before the bell on Thursday. Here’s what Wall Street is expecting, based on average analysts’ estimates compiled by Refinitive.

  • Adjusted EPS: $1.38
  • Revenue: $35.51 billion

Former CFO Dhivya Suryadevara told investors in July that the automaker expected the third quarter to be “slightly stronger” than the fourth quarter. She unexpectedly left GM for digital payments company Stripe in August.

Suryadevara said if the monthly sales pace during the second half of the year was 14 million, investors should expect a pretax profit of $4 billion to $5 billion through the fourth quarter. In that scenario, GM expected to generate free cash flow of $7 billion to $9 billion. Suryadevara declined to release official guidance at the time, citing fluidity due to the coronavirus pandemic.

Cox Automotive estimated the U.S. sales pace at 15.3 million in the third quarter, which should allow GM to outperform those projections.

GM reported an adjusted pretax profit of $3 billion, or $1.72 earnings per share, in the third quarter of 2019. Revenue was $35.47 billion.

Both Ford Motor and Fiat Chrysler beat Wall Street’s expectations on better-than-expected demand for trucks and SUVs in North America. Those are segments GM has substantial market shares of as well.

GM’s U.S. vehicle sales were down 17.4% heading into the fourth quarter, including a decline of 9.9% in the third quarter. That compared to a 5% decline

GM’s shares remain down by about 3% so far this year, despite a 16.7% increase in the stock price in October.

This story is developing. Please check back for updates.



Source link

Discover

Sponsor

Latest

Robinhood will run Super Bowl ad as brand crisis mounts

The GameStop Corp. website on a laptop computer and Robinhood application on a smartphone.Tiffany Hagler-Geard | Bloomberg | Getty ImagesRobinhood, which has found...

Covid relief bill adds PPP tax breaks the Treasury opposed

House Speaker Nancy Pelosi, D-Calif., leaves a meeting on Capitol Hill on Dec. 18, 2020.Saul Loeb | AFP | Getty ImagesLawmakers extended an...

Biden will keep Christopher Wray as FBI director, White House source says

Federal Bureau of Investigation Director Christopher Wray announces significant law enforcement actions related to the illegal sale of drugs and other illicit goods...

Google Maps Covid-19 layer shows coronavirus outbreaks near you

Google Maps Covid-19 overlayGoogleGoogle on Wednesday announced a new feature in Google Maps that will show you how many Covid-19 cases there are in...

Roku, United Airlines, Lemonade, Zoom & more

Here are the companies making headlines in midday trading.Roku – Shares of the streaming device maker slid more than 3% after KeyBanc downgraded...