GM Earnings: What Wall Street Expects and What It Means for Investors

General Motors (GM) is set to report its fourth-quarter earnings before the bell on Tuesday, January 28. As investors await the results, Wall Street analysts have compiled their expectations for the automaker's performance. Here's what they're expecting and what it means for investors.



Earnings per share (EPS) and revenue

Wall Street analysts expect GM to report adjusted earnings per share (EPS) of $1.89 and revenue of $43.93 billion for the fourth quarter of 2024. These figures represent a 2.2% increase in EPS and a 52.4% jump in revenue compared to the same period last year. Additionally, revenue is expected to grow by 2.2% compared to the previous quarter.



What these expectations mean for investors

1. Strong growth in earnings and revenue: The significant increase in EPS compared to the same period last year indicates that GM's profitability is improving. Additionally, the substantial increase in revenue compared to the previous quarter suggests that GM's sales and market share are growing. This could be attributed to factors such as increased demand for GM's products, successful marketing campaigns, or improvements in the company's production and distribution processes.
2. Positive outlook for 2025: Despite the increased regulatory uncertainty and the decision to discontinue the Cruise self-driving unit, GM's strong performance in the fourth quarter suggests a positive outlook for 2025. The company's focus on cost-cutting initiatives, operational efficiency, and expanding its EV portfolio may help it maintain its competitive edge in the market.
3. Investment opportunities: With GM's stock relatively flat to begin the year despite an upgrade from Deutsche Bank to buy from hold, investors may see this as an opportunity to buy the stock ahead of the earnings report. If GM's results meet or exceed expectations, the stock could see a boost in price.

In conclusion, General Motors' expected earnings and revenue growth, along with its positive outlook for 2025, present an attractive investment opportunity for investors. As the company continues to focus on cost-cutting initiatives, operational efficiency, and expanding its EV portfolio, investors can expect strong performance from GM in the coming years.