We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Motors (GM) Q2 Earnings Top Estimates on GMNA Strength
Read MoreHide Full Article
General Motors (GM - Free Report) reported second-quarter 2024 adjusted earnings of $3.06 per share, which surpassed the Zacks Consensus Estimate of $2.67. The bottom line also increased from the year-ago quarter’s level of $1.91. Solid results from the GMNA segment led to the outperformance. Revenues of $47.97 billion beat the Zacks Consensus Estimate of $44.94 billion and increased from $44.75 billion recorded in the year-ago period.
The U.S. auto giant recorded adjusted earnings before interest and taxes (EBIT) of $4.4 billion, higher than $3.2 billion in the prior-year quarter. The automaker’s share in the GM market was 8.4% in the reported quarter compared with 9.1% in the year-ago quarter.
General Motors Company Price, Consensus and EPS Surprise
GM North America (“GMNA”) generated net revenues of $40.7 billion, up from $37.2 billion recorded in the corresponding period of 2023. The figure also outpaced our model projection of $37.5 billion on higher-than-expected deliveries. Wholesale vehicle sales in the GMNA unit totaled 903,000 units, up from 833,000 units reported in the year-ago quarter. The figure also surpassed our estimate of 845,000 units. The segment’s operating profit totaled $4.43 billion, up from $3.19 billion recorded in the year-earlier period. The metric also exceeded our estimate of $3.37 billion.
GM International's (“GMI”) net revenues in the reported quarter amounted to $3.3 billion, down from the year-ago quarter’s $3.95 billion. The metric also missed our estimate of $3.67 billion. The segment’s wholesale vehicle sales of 140,000 units decreased from 147,000 units in the year-ago quarter. GMI reported an operating profit of $50 million, lower than the profit of $236 million generated in the year-ago period. Our estimate was an operating profit of $147 million.
GM Financial generated net revenues of $3.92 billion in the quarter, up from $3.5 billion recorded in the year-ago period and ahead of our prediction of $3.55 billion. The segment recorded an EBIT-adjusted operating profit of $822 million, up from $766 million recorded in the year-ago period. The metric surpassed our prediction of $689 million.
GM Cruise recorded net revenues of $25 million in the second quarter compared with $26 million recorded in the corresponding quarter of 2023. The metric came in line with our projection. The segment posted an operating loss of $458 million, narrower than a loss of $611 million reported in the prior-year quarter. The reported loss was, however, wider than our estimate of a loss of $432 million.
Financial Position
General Motors had cash and cash equivalents of $22.5 billion as of Jun 30, 2024. The long-term automotive debt at the end of the quarter was $15.4 billion. Net automotive cash provided by operating activities amounted to $7.7 billion during the quarter under review. The company recorded an adjusted automotive free cash flow of $5.3 billion in the second quarter of 2024.
GM declared its third-quarter dividend of 12 cents per share. The dividend will be paid out on Sep 19 to shareholders of record as of Sep 6, 2024.
2024 Guidance Raised
For full-year 2024, GM now expects adjusted EBIT in the range of $13-$15 billion, up from $12.5-$14.5 billion guided earlier. Adjusted EPS is anticipated in the range of $9.5-$10.5, up from $9-$10, guided earlier. Adjusted automotive free cash flow is expected in the band of $9.5-$11.5 billion, higher than the prior forecast of $8.5-$10.5 billion.
Zacks Rank & Key Picks
General Motors currently carries a Zacks Rank #3 (Hold). Better-ranked players in the auto market include Honda (HMC - Free Report) , Allison Transmission (ALSN - Free Report) and BorgWarner (BWA - Free Report) . While HMC sports a Zacks Rank #1 (Strong Buy), ALSN and BWA carry a Zacks Rank #2 (Buy) each.
The Zacks Consensus Estimate for HMC’s fiscal 2025 and 2026 EPS has moved up by 4 cents each in the past seven days. The Japanese auto biggie surpassed earnings estimates in the trailing four quarters, with the average surprise being 66.6%.
The Zacks Consensus Estimate for ALSN’s 2024 and 2025 EPS implies a year-over-year uptick of 4% and 12.5%, respectively. The automotive equipment supplier surpassed earnings estimates in the trailing four quarters, with the average surprise being 14.3%.
The Zacks Consensus Estimate for BWA’s 2024 and 2025 EPS implies a year-over-year increase of 8% and 14.6%, respectively. The automotive equipment supplier surpassed earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 10.3%.
Image: Bigstock
General Motors (GM) Q2 Earnings Top Estimates on GMNA Strength
General Motors (GM - Free Report) reported second-quarter 2024 adjusted earnings of $3.06 per share, which surpassed the Zacks Consensus Estimate of $2.67. The bottom line also increased from the year-ago quarter’s level of $1.91. Solid results from the GMNA segment led to the outperformance. Revenues of $47.97 billion beat the Zacks Consensus Estimate of $44.94 billion and increased from $44.75 billion recorded in the year-ago period.
The U.S. auto giant recorded adjusted earnings before interest and taxes (EBIT) of $4.4 billion, higher than $3.2 billion in the prior-year quarter. The automaker’s share in the GM market was 8.4% in the reported quarter compared with 9.1% in the year-ago quarter.
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 net revenues of $40.7 billion, up from $37.2 billion recorded in the corresponding period of 2023. The figure also outpaced our model projection of $37.5 billion on higher-than-expected deliveries. Wholesale vehicle sales in the GMNA unit totaled 903,000 units, up from 833,000 units reported in the year-ago quarter. The figure also surpassed our estimate of 845,000 units. The segment’s operating profit totaled $4.43 billion, up from $3.19 billion recorded in the year-earlier period. The metric also exceeded our estimate of $3.37 billion.
GM International's (“GMI”) net revenues in the reported quarter amounted to $3.3 billion, down from the year-ago quarter’s $3.95 billion. The metric also missed our estimate of $3.67 billion. The segment’s wholesale vehicle sales of 140,000 units decreased from 147,000 units in the year-ago quarter. GMI reported an operating profit of $50 million, lower than the profit of $236 million generated in the year-ago period. Our estimate was an operating profit of $147 million.
GM Financial generated net revenues of $3.92 billion in the quarter, up from $3.5 billion recorded in the year-ago period and ahead of our prediction of $3.55 billion. The segment recorded an EBIT-adjusted operating profit of $822 million, up from $766 million recorded in the year-ago period. The metric surpassed our prediction of $689 million.
GM Cruise recorded net revenues of $25 million in the second quarter compared with $26 million recorded in the corresponding quarter of 2023. The metric came in line with our projection. The segment posted an operating loss of $458 million, narrower than a loss of $611 million reported in the prior-year quarter. The reported loss was, however, wider than our estimate of a loss of $432 million.
Financial Position
General Motors had cash and cash equivalents of $22.5 billion as of Jun 30, 2024. The long-term automotive debt at the end of the quarter was $15.4 billion. Net automotive cash provided by operating activities amounted to $7.7 billion during the quarter under review. The company recorded an adjusted automotive free cash flow of $5.3 billion in the second quarter of 2024.
GM declared its third-quarter dividend of 12 cents per share. The dividend will be paid out on Sep 19 to shareholders of record as of Sep 6, 2024.
2024 Guidance Raised
For full-year 2024, GM now expects adjusted EBIT in the range of $13-$15 billion, up from $12.5-$14.5 billion guided earlier. Adjusted EPS is anticipated in the range of $9.5-$10.5, up from $9-$10, guided earlier. Adjusted automotive free cash flow is expected in the band of $9.5-$11.5 billion, higher than the prior forecast of $8.5-$10.5 billion.
Zacks Rank & Key Picks
General Motors currently carries a Zacks Rank #3 (Hold). Better-ranked players in the auto market include Honda (HMC - Free Report) , Allison Transmission (ALSN - Free Report) and BorgWarner (BWA - Free Report) . While HMC sports a Zacks Rank #1 (Strong Buy), ALSN and BWA carry a Zacks Rank #2 (Buy) each.
The Zacks Consensus Estimate for HMC’s fiscal 2025 and 2026 EPS has moved up by 4 cents each in the past seven days. The Japanese auto biggie surpassed earnings estimates in the trailing four quarters, with the average surprise being 66.6%.
The Zacks Consensus Estimate for ALSN’s 2024 and 2025 EPS implies a year-over-year uptick of 4% and 12.5%, respectively. The automotive equipment supplier surpassed earnings estimates in the trailing four quarters, with the average surprise being 14.3%.
The Zacks Consensus Estimate for BWA’s 2024 and 2025 EPS implies a year-over-year increase of 8% and 14.6%, respectively. The automotive equipment supplier surpassed earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 10.3%.
You can see the complete list of today’s Zacks #1 Rank stocks here