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General Motors (GM) Q2 Earnings Snap Beat Streak, Revenues Up
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General Motors (GM - Free Report) reported second-quarter 2022 adjusted earnings of $1.14 per share, lagging the Zacks Consensus Estimate of $1.39. Lower-than-expected revenues from North America, International and Financial segments resulted in the underperformance. The bottom line also declined from the year-ago quarter’s earnings of $1.97 per share.
Revenues of $35,759 million missed the Zacks Consensus Estimate of $36,249 million. The top line, however, increased from the year-ago figure of $34,167 million. The company recorded adjusted earnings before interest and taxes (EBIT) of $2,343 million, lower than $4,117 million in the prior-year quarter.
The automaker’s share in the GM market was 9.6% in the reported quarter, slightly down from the year-ago quarter’s 9.9%.
General Motors Company Price, Consensus and EPS Surprise
GM North America (GMNA) generated second-quarter net revenues of $28,760 million, up from $27,932 million recorded in the corresponding period of 2021. Nonetheless, revenues from the unit lagged the Zacks Consensus Estimate of $29,132 million. The region’s wholesale vehicle sales of 662,000 units increased from 642,000 units reported in the year-ago quarter. The segment’s operating profit came in at $2,299 million, contracting from $2,894 million witnessed in the year-earlier period. The segmental profit also missed the consensus mark of $2,433 million.
GM International’s (GMI) net revenues in the reported quarter came in at $3,807 million, up from the year-ago quarter’s $2,792 million. The metric, however, fell short of the consensus mark of $4,574 million. The segment’s wholesale vehicle sales of 155,000 units increased from 118,000 units in the year-ago quarter. The unit reported an operating profit of $209 million, surging from the year-ago profit of $15 million. The metric also topped the consensus mark of $139 million.
GM Financial generated net revenues of $3,146 million in the quarter, down from $3,426 million recorded in the year-ago period and missed the consensus mark of $3,352 million. Also, the segment recorded an EBIT-adjusted operating profit of $1,106 million, down from $1,581 million but beat the consensus mark of $870 million.
GM Cruise witnessed net revenues of $25 million in the second quarter, flat year over year. The segment posted an operating loss of $543 million, wider than $332 million loss reported in the prior-year quarter. The reported loss also came in wider than the consensus mark of a loss of $291 million.
Financial Position
General Motors had cash and cash equivalents of $16,710 million as of Jun 30, 2022, compared with $20,067 million as of Dec 31, 2021. The long-term automotive debt at the end of the quarter was $16,121 million compared with $16,355 million as of Dec 31, 2021.
General Motors’ automotive cash provided by operating activities amounted to $3,469 million at the end of the reported quarter, lower than the year-ago period’s $4,007 million. The company recorded an adjusted automotive free cash flow of $1,407 million in second-quarter 2022, down from $2,478 million generated in the second quarter of 2021.
2022 Guidance Reinstated
For 2022, General Motors expects full-year net income to be in the range of $9.6-$11.2 billion. Adjusted EBIT is anticipated in the range of $13.0 billion to $15.0 billion. Adjusted EPS is estimated in the band of $6.5-$7.5. Adjusted automotive free cash flow is envisioned between $7 billion and $9 billion.
A few better-ranked players in the auto space include Garrett Motion (GTX - Free Report) and Commercial Vehicle Group (CVGI - Free Report) . Both these stocks sport a Zacks Rank #1.
Switzerland-based Garrett designs, manufactures, and sells turbocharger and electric-boosting technologies. The Zacks Consensus Estimate for GTX’s 2022 earnings and sales implies year-over-year growth of 6.7% and 1.8%, respectively. The consensus mark for 2022 earnings has been revised upward by 5 cents in the past 60 days. Over the trailing four quarters, Garrett surpassed earnings estimates twice for as many misses, the average being 75.4%.
Ohio-based Commercial Vehicle Group supplies interior systems, vision safety solutions and other cab-related products for the global commercial vehicle market, including the heavy-duty (Class 8) truck market, the construction market and other specialized transportation markets. The Zacks Consensus Estimate for CVGI’s 2022 earnings and sales implies year-over-year growth of 6.2% and 2.6%, respectively. The consensus mark for 2022 earnings has been revised upward by 10 cents in the past 30 days.
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General Motors (GM) Q2 Earnings Snap Beat Streak, Revenues Up
General Motors (GM - Free Report) reported second-quarter 2022 adjusted earnings of $1.14 per share, lagging the Zacks Consensus Estimate of $1.39. Lower-than-expected revenues from North America, International and Financial segments resulted in the underperformance. The bottom line also declined from the year-ago quarter’s earnings of $1.97 per share.
Revenues of $35,759 million missed the Zacks Consensus Estimate of $36,249 million. The top line, however, increased from the year-ago figure of $34,167 million. The company recorded adjusted earnings before interest and taxes (EBIT) of $2,343 million, lower than $4,117 million in the prior-year quarter.
The automaker’s share in the GM market was 9.6% in the reported quarter, slightly down from the year-ago quarter’s 9.9%.
General Motors Company Price, Consensus and EPS Surprise
General Motors Company price-consensus-eps-surprise-chart | General Motors Company Quote
Segmental Performance
GM North America (GMNA) generated second-quarter net revenues of $28,760 million, up from $27,932 million recorded in the corresponding period of 2021. Nonetheless, revenues from the unit lagged the Zacks Consensus Estimate of $29,132 million. The region’s wholesale vehicle sales of 662,000 units increased from 642,000 units reported in the year-ago quarter. The segment’s operating profit came in at $2,299 million, contracting from $2,894 million witnessed in the year-earlier period. The segmental profit also missed the consensus mark of $2,433 million.
GM International’s (GMI) net revenues in the reported quarter came in at $3,807 million, up from the year-ago quarter’s $2,792 million. The metric, however, fell short of the consensus mark of $4,574 million. The segment’s wholesale vehicle sales of 155,000 units increased from 118,000 units in the year-ago quarter. The unit reported an operating profit of $209 million, surging from the year-ago profit of $15 million. The metric also topped the consensus mark of $139 million.
GM Financial generated net revenues of $3,146 million in the quarter, down from $3,426 million recorded in the year-ago period and missed the consensus mark of $3,352 million. Also, the segment recorded an EBIT-adjusted operating profit of $1,106 million, down from $1,581 million but beat the consensus mark of $870 million.
GM Cruise witnessed net revenues of $25 million in the second quarter, flat year over year. The segment posted an operating loss of $543 million, wider than $332 million loss reported in the prior-year quarter. The reported loss also came in wider than the consensus mark of a loss of $291 million.
Financial Position
General Motors had cash and cash equivalents of $16,710 million as of Jun 30, 2022, compared with $20,067 million as of Dec 31, 2021. The long-term automotive debt at the end of the quarter was $16,121 million compared with $16,355 million as of Dec 31, 2021.
General Motors’ automotive cash provided by operating activities amounted to $3,469 million at the end of the reported quarter, lower than the year-ago period’s $4,007 million. The company recorded an adjusted automotive free cash flow of $1,407 million in second-quarter 2022, down from $2,478 million generated in the second quarter of 2021.
2022 Guidance Reinstated
For 2022, General Motors expects full-year net income to be in the range of $9.6-$11.2 billion. Adjusted EBIT is anticipated in the range of $13.0 billion to $15.0 billion. Adjusted EPS is estimated in the band of $6.5-$7.5. Adjusted automotive free cash flow is envisioned between $7 billion and $9 billion.
Zacks Rank & Key Picks
General Motors currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few better-ranked players in the auto space include Garrett Motion (GTX - Free Report) and Commercial Vehicle Group (CVGI - Free Report) . Both these stocks sport a Zacks Rank #1.
Switzerland-based Garrett designs, manufactures, and sells turbocharger and electric-boosting technologies. The Zacks Consensus Estimate for GTX’s 2022 earnings and sales implies year-over-year growth of 6.7% and 1.8%, respectively. The consensus mark for 2022 earnings has been revised upward by 5 cents in the past 60 days. Over the trailing four quarters, Garrett surpassed earnings estimates twice for as many misses, the average being 75.4%.
Ohio-based Commercial Vehicle Group supplies interior systems, vision safety solutions and other cab-related products for the global commercial vehicle market, including the heavy-duty (Class 8) truck market, the construction market and other specialized transportation markets. The Zacks Consensus Estimate for CVGI’s 2022 earnings and sales implies year-over-year growth of 6.2% and 2.6%, respectively. The consensus mark for 2022 earnings has been revised upward by 10 cents in the past 30 days.