General Motors (GM) Q3 Earnings: What To Expect

Automotive manufacturer General Motors (NYSE:GM) will be announcing earnings results this Tuesday before the bell. Here’s what you need to know.

General Motors beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $47.12 billion, down 1.8% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EBITDA estimates.

Is General Motors a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting General Motors’s revenue to decline 7.7% year on year to $45.02 billion, a reversal from the 10.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.33 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. General Motors has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.2% on average.

Looking at General Motors’s peers in the industrials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 6%, and AAR reported revenues up 11.8%, topping estimates by 7.4%. Richardson Electronics traded up 11.4% following the results while AAR was also up 4.2%.

Read our full analysis of Richardson Electronics’s results here and AAR’s results here.

Investors in the industrials segment have had steady hands going into earnings, with share prices flat over the last month. General Motors’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $64.48 (compared to the current share price of $58.60).

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