GM CEO and President Mary Barra speaks during an “EV Day” on March 4, 2020 at the company’s technology and design campus in Warren, Michigan, a suburb of Detroit
GM
General Motors is expected to disclose its fourth quarter earnings ahead of Wednesday’s bell. Here’s what Wall Street is expecting, based on the average of the analysts’ estimates compiled by Refinitiv.
- Adjusted EPS: $ 1.64
- Revenue: $ 36.12 billion
This would be in line with the company’s unofficial guidance. In November, John Stapleton, then GM’s interim CFO, told Wall Street analysts that GM expected its pre-tax adjusted profit to be about $ 8.5 billion and $ 9 billion in the second half of the year.
The automaker reported pre-tax adjusted earnings of $ 5.3 billion, or $ 2.83 earnings per share, for the third quarter, while saying that 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 work strike that affected vehicle production. Revenue was $ 30.8 billion during that quarter.
Wall Street is also looking to CEO Mary Barra and other executives for information on a number of other issues – from the 2021 orientation and possible dividend reinstatement to updates to the company’s all-electric and autonomous vehicle plans.
Wall Street analysts will also want to know how a global semiconductor chip shortage is expected to impact the automaker in 2021. GM’s rival Ford Motor said last week that the shortage could reduce its earnings by $ 1 billion to $ 2.5 billion this year.
Barclays analyst Brian Johnson, in a note to investors on Monday, said the company expects GM to provide “a cautious outlook for 2021” due to the scarcity of semiconductor chips.
GM’s shares have risen more than 30% so far this year, led by optimism about its plans for all-electric vehicles and new technologies.
This story is developing. Please check again for updates.