General Motors (NYSE:GM) is scheduled to announce Q3 earnings results on Tuesday, October 21st, before market open.
Wall Street, on average, expects the automobile company to post a quarterly EPS of $2.32 (-21.6% Y/Y) on revenue of $45.33B (-7.3% Y/Y).
In the second quarter, General Motors’ earnings took a $1.1-billion hit from tariffs, but the automaker still beat analyst expectations for the period, supported by strong sales of its core gasoline trucks and SUVs and reaffirmed its annual forecast.
GM, the top U.S. automaker by sales, said tariffs could cost $4–$5 billion this year, with a bigger hit expected in Q3. The company aims to offset at least 30% of the impact.
GM is expected to take $1.6 billion in Q3 charges due to a strategic EV realignment, responding to an expected slowdown in consumer demand.
“General Motors has rallied despite tariff headwinds and downward earnings revisions, but its current premium valuation versus historical levels appears disconnected from pressured margins,” pointed out a recent Seeking Alpha analysis.
Over the last 2 years, GM has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.
Over the last 3 months, EPS estimates have seen 10 upward revisions and 9 downward. Revenue estimates have seen 8 upward revisions and 5 downward.
Since the start of the year, GM shares have risen 7.6%, compared to the near 13% rise in the broader S&P 500 index (SP500).
Seeking Alpha’s Quant recommended the stock as a Hold, while the Wall Street analysts see the company as a Buy.