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General Motors (GM) to Report Q1 Earnings: What's in Store?

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General Motors Company (GM - Free Report) is set to report first-quarter 2019 results on Apr 30, before the opening bell. In the last reported quarter, the company delivered a positive earnings surprise of 18.2%.

In fact, it delivered a positive earnings surprise in three of the trailing four quarters while missed estimates once, the average earnings surprise being 20.5%. Further, the long-term expected earnings growth rate for the company (over three to five years) is currently pegged at 8.9%.

In the past three months, shares of General Motors have outperformed the industry it belongs to. Over this time frame, shares of the company have gained 3.1% while the industry rose 1.1%.

Let’s see how things are shaping up for this announcement.

General Motors Company Price and EPS Surprise

 

General Motors Company Price and EPS Surprise | General Motors Company Quote

Factors to Consider

In first-quarter 2019, General Motors’ sales declined 7% on a year-over-year basis. Despite the overall sales decline, it has been observed that buyers are increasingly spending in comparatively expensive sport utility vehicles (SUVs) and pickup trucks. Notably, the share of trucks, SUVs and crossovers was 80% in General Motors’ total sales. High demand for SUVs and trucks, which are more profitable, is likely to have a positive influence on first-quarter 2019 earnings results.

During the quarter, the company took some measures to restructure operations and develop future technologies. For the soon-to-be-reported quarter, the Zacks Consensus Estimate for revenues of the General Motors North America (“GMNA”) segment is pegged at $26.1 billion, whereas in fourth-quarter 2018, net sales and revenues of General Motors North America were $29.8 billion.

Earnings Whisper

Our proven model does not conclusively predict that General Motors is likely to beat on earnings this quarter. This is because, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.

Earnings ESP: General Motors has an Earnings ESP of -3.70% as the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.04 and $1.08, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Note that we caution against Rank #4 and 5 (Sell-rated) stocks going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

Here are a few auto stocks worth considering, comprising the right combination of elements to come up with an earnings beat this time around:

Wabco Holdings Inc. has an Earnings ESP of +2.37% and a Zacks Rank of 3 at present. The company is expected to release financial results for first-quarter 2019 on Apr 26.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Cummins Inc. (CMI - Free Report) has an Earnings ESP of +2.02% and a Zacks Rank #3 at present. The company’s financial results for first-quarter 2019 are slated to release on Apr 30.

Oshkosh Corporation (OSK - Free Report) has an Earnings ESP of +1.62% and a Zacks Rank #3 at present. The company’s financial results for second-quarter 2019 are slated to release on Apr 30.

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