General Motors (NYSE:GM) is gearing up to unveil its first-quarter 2024 results on April 23, before the market opens. Analysts anticipate earnings of $2.06 per share and revenues of $40.61 billion for the quarter.
In the past month, the earnings estimate has been revised upward by 4 cents, though it reflects a 6.79% year-over-year decline. Meanwhile, the revenue projection suggests a 1.56% increase from the previous year.
While General Motors has consistently surpassed earnings estimates in the past four quarters, its last reported quarter saw a miss, attributed to lower-than-expected profits from various segments.
Factors in Focus
In the United States, General Motors experienced a 1.5% year-over-year decline in first-quarter sales to 594,233 units, primarily due to reduced fleet deliveries and the phase-out of the Chevrolet Bolt EV, which impacted overall sales.
Despite these challenges, the automaker witnessed a notable 6% increase in retail sales. Buick, Chevrolet, Cadillac, and GMC all saw positive year-over-year growth in retail sales, while sales of GM Envolve declined. Notably, sales of Silverado and Sierra increased by 2.4% and 2.1%, respectively.
For the first quarter, wholesale vehicle sales from the GMNA segment are projected to decline slightly year-over-year to 718,000 units. However, revenue per unit from this segment is expected to rise by 2.7%, with total revenues reaching $33.55 billion. Operating income from the GMNA segment is forecasted to decline by 23% to $2.75 billion.
Conclusion
Despite challenges in fleet deliveries and the phase-out of certain models, General Motors’ retail sales surge indicates underlying strength in its core market. While earnings are expected to decline year-over-year, the company’s ability to adapt to market dynamics and capitalize on retail demand bodes well for its long-term prospects. Investors should closely monitor the upcoming earnings report for insights into General Motors’ performance and strategic outlook.
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