General Motors (GM) earnings Q4 2020


GM CEO and chairman Mary Barra speaks during an “EV Day” on March 4, 2020 at the company’s tech and design campus in Warren, Mich., a suburb of Detroit

GM

General Motors is set to report its fourth-quarter earnings before the bell on Wednesday. Here’s what Wall Street is expecting, based on average analysts’ estimates compiled by Refinitiv.

  • Adjusted EPS: $1.64
  • Revenue: $36.12 billion

That would be in-line with unofficial guidance from the company. In November, John Stapleton, then-GM’s interim CFO, told Wall Street analysts that GM expected its pretax adjusted earnings would be around $8.5 billion and $9 billion for the second half of the year.

The automaker reported pretax adjusted earnings of $5.3 billion, or $2.83 earnings per share, for the third quarter, while saying the fourth quarter would be weaker due to seasonality.

GM reported an adjusted pretax profit of $105 million in the fourth quarter of 2019 due to a 40-day labor strike impacting vehicle production. Revenue was $30.8 billion during that quarter.

Wall Street is also looking to CEO Mary Barra and other executives for insight into a number of other issues – from 2021 guidance and potential dividend reinstatement to updates on the company’s all-electric and autonomous vehicle plans.

Wall Street analysts also will want to know how a global semiconductor chip shortage is expected to impact the automaker in 2021. GM’s crosstown rival, Ford Motor, last week said the shortage could lower its earnings by $1 billion to $2.5 billion this year.

Barclays analyst Brian Johnson in a note to investors Monday said the firm expects GM to provide “a cautious 2021 outlook” due to the semiconductor chip shortage.

GM’s shares are up by more than 30% so far this year, led by optimism regarding its all-electric vehicle plans and new technologies.

This story is developing. Please check back for updates.



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