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Earnings To Watch: General Motors (GM) Reports Q4 Results Tomorrow

GM Cover Image

Automotive manufacturer General Motors (NYSE: GM) will be reporting earnings this Tuesday before market open. Here’s what investors should know.

General Motors beat analysts’ revenue expectations by 7.9% last quarter, reporting revenues of $48.59 billion, flat year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Is General Motors a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting General Motors’s revenue to decline 4% year on year to $45.81 billion, a reversal from the 11% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.26 per share.

General Motors Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. General Motors has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.8% on average.

Looking at General Motors’s peers in the industrials segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Winnebago delivered year-on-year revenue growth of 12.3%, beating analysts’ expectations by 10.9%, and Mobileye reported a revenue decline of 9%, topping estimates by 3.1%. Winnebago traded up 5.2% following the results while Mobileye was down 9%.

Read our full analysis of Winnebago’s results here and Mobileye’s results here.

There has been positive sentiment among investors in the industrials segment, with share prices up 9.2% on average over the last month. General Motors is down 4% during the same time and is heading into earnings with an average analyst price target of $86.04 (compared to the current share price of $79.67).

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