General Motors (GM) earnings quarter IV 2020

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

GM

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

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

This would be in line with the company’s unofficial guidelines. In November, John Stapleton, then GM’s interim chief financial officer, told Wall Street analysts that GM expected its pre-tax adjusted revenue to be about $ 8.5 billion and $ 9 billion for the second half of the year.

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

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

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

Wall Street analysts will also want to know how a global shortage of semiconductor chips is expected to impact the automaker in 2021. Ford’s GM rival Ford Motor said last week that the shortfall could -reduces its $ 1 billion earnings to $ 2.5 billion this year.

Barclays analyst Brian Johnson said in a note to investors on Monday that the company expects GM to offer “a cautious outlook in 2021” due to a lack of semiconductor chips.

GM shares have risen by more than 30% this year, driven by optimism over fully electric vehicle plans and new technologies.

This story is developing. Please check again for updates.

.Source