General Motors Q3 earnings on deck: What to expect

General Motors (NYSE:GM) is expected to post third quarter results on Tuesday, before markets open.

Wall Street expects the Detroit-based company to post EPS of $2.40 on revenue of $44.38 billion.

Even though, General Motors faces headwinds from slow sales in China and competition from other legacy automakers, still the company’s demand for internal combustion engines (ICE) vehicles continues to drive profit.

Earlier in July, General Motors reported a 60% increase in its second quarter profit and lifted FY24 profit guidance, fuelled by strong U.S. demand that offset continued still sluggish demand in China.

“GM’s Q3 earnings and FY2025 prospects look promising, driven by a $2B reduction in fixed costs and growing market share, especially in EVs,” noted Seeking Alpha analyst Luca Socci.

Seeking Alpha analyst Ken Taylor said GM’s “market share gains in both ICE and EV segments, coupled with disciplined leadership, position it well for sustained growth” in the future despite economic uncertainties.

The company’s stock gained over 6% since its second quarter results. Overall, it rose nearly 37%, outperforming the about 23% rise in the broader S&P500 Index.

Over the last two years, GM has beaten EPS and revenue estimates 100% of the time.

Seeking Alpha analysts, Wall Street as well as Seeking Alpha’s Quant ratings are bullish and rated the stock a Buy and above.

Over the last three months, EPS estimates have seen 11 upward revisions, compared to five downward revisions, while revenue estimates have seen four upward revisions versus seven downward moves.