GM CEO and Chairman Mary Barra speaks at an “EV Day” on March 4, 2020 at the company’s tech and design campus in Warren, Michigan, a suburb of Detroit.
GM
General Motors will report its fourth-quarter earnings before the bell on Wednesday. This is what Wall Street expects, based on average analyst estimates compiled by Refinitiv.
- Adjusted Earnings Per Share: $ 1.64
- Sales: $ 36.12 billion
That would be consistent with the company’s unofficial guidance. In November, John Stapleton, GM’s then-interim CFO, told Wall Street analysts that GM expected adjusted pre-tax earnings to be approximately $ 8.5 billion and $ 9 billion for the second half of the year.
The automaker reported adjusted pre-tax earnings of $ 5.3 billion, or $ 2.83 earnings per share, for the third quarter, saying 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 as a result of a 40-day strike that impacted vehicle production. Sales in that quarter were $ 30.8 billion.
Wall Street is also asking CEO Mary Barra and other executives for insight into a number of other issues – from 2021 guidelines and potential dividend recovery to updates on the company’s plans for all-electric and autonomous vehicles.
Wall Street analysts will also want to know how a global shortage of semiconductor chips is expected to affect the automaker in 2021. GM’s crosstown rival Ford Motor said last week that the deficit could cut its revenues by $ 1 billion this year to $ 2.5 billion.
Barclays analyst Brian Johnson said in a note to investors on Monday that the company expects GM to offer “a cautious 2021 outlook” due to the semiconductor chip shortage.
GM’s stock is up more than 30% so far this year, led by optimism about its plans for all-electric vehicles and new technologies.
This story develops. Please check again for updates.