Will Rise in Retail Sales Aid General Motors' (GM) Q1 Earnings?

Zacks Equity Research

April 22, 2024 at 1:33 p.m.·4 min read

General Motors GM is slated to release first-quarter 2024 results on Apr 23, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at $2.06 per share and $40.61 billion, respectively.

The Zacks Consensus Estimate for General Motors’ first-quarter earnings per share has been revised upward by 4 cents in the past 30 days. The bottom-line projection indicates a year-over-year decline of 6.79%. The top-line estimate suggests a year-over-year increase of 1.56%.

In the last reported quarter, the company missed earnings estimates on lower-than-expected profits from the GM North America (“GMNA”), General Motors International and GM Financial segments. The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average being 19.95%. This is depicted in the graph below:

General Motors Company Price and EPS Surprise

General Motors Company price-eps-surprise | General Motors Company Quote

Factors at Play

General Motors’ first-quarter sales in the United States declined 1.5% year over year to 594,233 units, primarily due to lower fleet deliveries. The phase-out of Chevrolet Bolt EV is expected to have adversely impacted GM’s sales.

However, the automaker reported a 6% year-over-year rise in retail sales. The year-over-year retail sales of Buick, Chevrolet, Cadillac and GMC rose 10%, 6%, 9% and 3%, respectively, while that of GM envolve declined 23%. In the first quarter, total sales of Silverado and Sierra increased 2.4% and 2.1% year over year, respectively.

For the first quarter, our projection for wholesale vehicle sales from the GMNA segment is pegged at 718,000 units, indicating a decline of 0.7% year over year. Our estimate for revenue per unit from the GMNA segment is pegged at $46,708, suggesting a year-over-year rise of 2.7%.

Our estimate for revenues from the GMNA segment is pegged at $33.55 billion, indicating a rise from $32.89 billion reported in the year-ago quarter. Our projection for operating income from the GMNA segment is pegged at $2.75 billion, suggesting a year-over-year decline of 23%.

Earnings Whispers

Our proven model predicts an earnings beat for General Motors this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here.

Earnings ESP: It has an Earnings ESP of +7.77%. This is because the Most Accurate Estimate is pegged higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: General Motors currently carries a Zacks Rank #2.

Other Stocks With the Favorable Combination

Here are some other players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time.

Oshkosh Corporation OSK has an Earnings ESP of +0.11% and a Zacks Rank #2 at present. The company is set to release first-quarter 2024 results on Apr 25. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for OSK’s to-be-reported quarter’s earnings and revenues is pegged at $2.26 per share and $2.51 billion, respectively. Oshkosh surpassed earnings estimates in each of the trailing four quarters, the average surprise being 46.78%.

Visteon Corporation VC has an Earnings ESP of +5.10% and a Zacks Rank #3 at present. The company is slated to release first-quarter 2024 results on Apr 25.

The Zacks Consensus Estimate for VC’s to-be-reported quarter’s earnings and revenues is pegged at $1.76 per share and $990.08 million, respectively. Visteon surpassed earnings estimates in two of the trailing four quarters and missed twice, the average surprise being 134.25%.

PACCAR Inc PCAR has an Earnings ESP of +0.33% and a Zacks Rank #2 at present. The company is scheduled to release first-quarter 2024 results on Apr 30.

The Zacks Consensus Estimate for PCAR’s to-be-reported quarter’s earnings and revenues is pegged at $2.17 per share and $8.08 billion, respectively. PACCAR surpassed earnings estimates in each of the trailing four quarters, the average surprise being 17.07%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

PACCAR Inc. (PCAR) : Free Stock Analysis Report

General Motors Company (GM) : Free Stock Analysis Report

Visteon Corporation (VC) : Free Stock Analysis Report

Oshkosh Corporation (OSK) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Barrons.com
DJT Stock Falls. SEC Charges Trump Media Auditing Firm With ‘Massive Fraud.’
The SEC charges the company’s auditing firm BF Borgers CPA and its owner Benjamin Borgers with ‘massive fraud.’
The Canadian Press
TD worst-case scenario more likely after drug money laundering allegations: analyst
TORONTO — TD Bank Group could be hit with more severe penalties than previously expected, says a banking analyst after a report that the investigation it faces in the U.S. is tied to laundering illicit fentanyl profits. National Bank analyst Gabriel Dechaine said in a note that the worst-case scenario of the multiple U.S. investigations TD faces needs reassessing after the Wall Street Journal reported the link on Thursday. The newspaper said the U.S. Justice Department investigation is focused o
Reuters
US stands to lose Canadian natural gas when LNG Canada terminal starts up
The start-up of LNG Canada, the country's first such export terminal, is likely to strain its natural gas supplies for multiple years and force producers to reduce exports to the U.S., where demand for the fuel is record high, companies said. Shell-led LNG Canada has begun testing its C$40-billion British Columbia terminal ahead of commercial operations starting in mid-2025. The terminal will process up to 2 billion cubic feet per day (bcfd), representing 11% of current Canadian gas output.
Yahoo Finance Canada
Galen Weston calls Loblaw boycott 'misguided criticism', says grocer not responsible for higher prices
"Their frustration is understandable, but this kind of expectation betrays a misunderstanding of what's actually driving food prices higher in this country."
The Motley Fool
Invest $10,000 in This Dividend Stock for $2,620.16 in Passive Income
This dividend stock is up 21% in the last year, with a 4.96% dividend yield. And even more growth is likely on the way for investors wanting security. The post Invest $10,000 in This Dividend Stock for $2,620.16 in Passive Income appeared first on The Motley Fool Canada.
GOBankingRates
Kevin O’Leary: The Money Is ‘Not in Bitcoin’ — Here’s What You Should Invest In
Cash flow. If you're a fan of "Shark Tank" or follow Kevin O'Leary, you've likely heard him talk about the importance of cash flow. In a recent video he posted to LinkedIn, O'Leary spoke again about...
The Independent
Accounting firm used by Trump Media hit with ‘massive fraud’ charge
Fraud alleged to have impacted upwards of 500 public companies, according to Securities and Exchange Commission
The Canadian Press
TD Bank hit with $9.2M penalty after failing to report suspicious transactions
TORONTO — Canada’s financial-crime watchdog has levied a $9.2-million penalty against The Toronto-Dominion Bank for non-compliance with money laundering and terrorist financing measures as the bank also faces compliance investigations in the U.S. The penalty by the Financial Transactions and Reports Analysis Centre of Canada, or Fintrac, comes after it imposed a $7.5-million fine against RBC and a $1.3-million fine against CIBC, both of which were announced in December. Those penalties were also
The Motley Fool
Monthly Income Masters: 2 Canadian Stocks Paying Steady Dividends Every 30 Days
You can expect to earn reliable monthly passive income for years to come by investing in these two top Canadian monthly dividend stocks now. The post Monthly Income Masters: 2 Canadian Stocks Paying Steady Dividends Every 30 Days appeared first on The Motley Fool Canada.
Yahoo Finance Canada
Air Canada shares plunge as wider loss, slowing travel demand weigh
The Montreal-based airline reported an adjusted net loss of $96 million, or 27 cents per share, more than the seven cents per share loss that analysts had expected.
The Canadian Press
There's a limit to how much interest rates in Canada and U.S. can diverge: Macklem
Bank of Canada governor Tiff Macklem says Canadian interest rates don't have to match U.S. or global rates, but there is a limit to how much they can diverge. Macklem made the comments while testifying before the House of Commons finance committee today. The governor says Canada is nowhere close to the limit when it comes to how much Canadian and American interest rates can differ. The Bank of Canada is widely expected to begin lowering its policy rate in the coming months, while forecasters exp
Reuters
Canadian dollar forecasts trimmed by analysts as BoC moves closer to rate cuts: Reuters poll
The Canadian dollar is set to strengthen less than previously expected over the coming year as the Bank of Canada makes progress on taming inflation and will likely begin cutting interest rates ahead of the Federal Reserve, a Reuters poll found. According to the median forecast of nearly 40 foreign exchange analysts in the April 29-May 2 poll, the loonie will strengthen 0.7% to 1.36 per U.S. dollar, or 73.53 U.S. cents, in three months, compared to 1.34 in last month's poll. "In the near term, I think there are going to be some headwinds," said Bipan Rai, global head of FX strategy at CIBC Capital Markets.
Simply Wall St.
Cenovus Energy Inc. Just Beat EPS By 36%: Here's What Analysts Think Will Happen Next
Cenovus Energy Inc. ( TSE:CVE ) investors will be delighted, with the company turning in some strong numbers with its...
The Canadian Press
Apple's quarterly iPhone sales plunge 10%, but stock price surges
Apple on Thursday disclosed its steepest quarterly decline in iPhone sales since the pandemic’s outset, deepening a slump that’s increasing the pressure on the trendsetting company to spruce up its products with more artificial intelligence. The 10% drop in year-over-year iPhone sales for the January-March period is latest sign of weakness in a product that generates most of Apple’s revenue. It marked the biggest drop in iPhone sales since July-September period in 2020, when production bottlenec
The Motley Fool
My Top 2 Canadian AI Stocks to Buy in May
Shopify (TSX:SHOP) and another tech firm that's innovating on the front of generative AI technology! The post My Top 2 Canadian AI Stocks to Buy in May appeared first on The Motley Fool Canada.
The Canadian Press
Federal Reserve says interest rates will stay at two-decade high until inflation further cools
WASHINGTON (AP) — The Federal Reserve on Wednesday emphasized that inflation has remained stubbornly high in recent months and said it doesn’t plan to cut interest rates until it has “greater confidence” that price increases are slowing sustainably to its 2% target. The Fed issued its decision in a statement after its latest meeting, at which it kept its key rate at a two-decade high of roughly 5.3%. Several hotter-than-expected reports on prices and economic growth have recently undercut the Fe
Yahoo Finance Canada
Weak loonie? These TSX stocks could gain strength, says RBC
It says Canadian stocks that tend to generate more earnings from the U.S. span the technology, media, financial, healthcare, industrial, and forest product sectors.
The Motley Fool
It’s Currently 8.7%, but Is BCE’s Dividend Safe?
BCE stock recently dipped, and it pays an ultra high dividend. But investors might want to think twice before jumping in. The post It’s Currently 8.7%, but Is BCE’s Dividend Safe? appeared first on The Motley Fool Canada.
Financial Post
Tiff Macklem defends Bank of Canada's two per cent inflation target
Senators questioned whether central bank could raise the target to give Canadians relief on high mortgage rates
The Motley Fool
2 Soaring TSX Stocks Whose Growth Is Just Getting Started
Badger Infrastructure Solutions (TSX:BDGI) and Cameco (TSX:CCO) are great growth plays that are a must watch on the way down. The post 2 Soaring TSX Stocks Whose Growth Is Just Getting Started appeared first on The Motley Fool Canada.

S&P/TSX

S&P 500

DOW

CAD/USD

CRUDE OIL

Bitcoin CAD

CMC Crypto 200

GOLD FUTURES

RUSSELL 2000

10-Yr Bond

NASDAQ

VOLATILITY

FTSE

NIKKEI 225

CAD/EUR

General Motors Company Price and EPS Surprise

Factors at Play

Earnings Whispers

Other Stocks With the Favorable Combination

Latest Stories