The GMC truck will be on display at Hanlees Hilltop GMC in Richmond, California on January 28, 2025.
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Detroit – General Motors Although it plans to report first-quarter revenues before Tuesday’s bell, investors are more likely to focus on car manufacturer guidance than quarterly results amid President Donald Trump’s ongoing car rates.
Tariffs, including a 25% tax on imported vehicles, create a growing uncertainty for the automotive industry. The instability has led Wall Street analysts downgrade many auto stocks, including GM.
Detroit automakers have not publicly announced any major changes to their production plans, but tariffs and other factors have adjusted production in North America.
Even with uncertainty in the long run, some Wall Street analysts expect GM to win the first quarter estimate as consumers rushed to buy the vehicle ahead of potential price increases due to tariffs.
According to average estimates compiled by LSEG, here is what Wall Street expects:
Earnings per share: $2.74 Adjusted Recording: $430.5 billion
These results show a 0.1% increase in revenue compared to a year ago, and a 4.6% increase in adjusted earnings per share. GM’s first quarter of 2024 included $430.1 billion in revenue, net income attributable to shareholders of $2.98 billion, and adjusted revenue from interest and pre-tax profit of $3.87 billion.
GM regularly raises annual guidance when reporting revenue for the first quarter in recent years, but it is unclear how much increased costs automakers can manage due to tariffs.
GM CEO Mary Barra in February said the company believed it could reduce the then potential tariffs on imports from Canada and Mexico, but it has yet to provide further information since the sector’s tariffs were implemented.
The current 25% automobile fares include GM imported vehicles from Canada and Mexico, particularly South Korea.
The company’s 2025 guidance issued in January includes profits of between $11.2 billion and $12.5 billion to shareholders, or between $11 and $12 per share. Interest and adjusted profits on adjusted EPSs between $13.7 billion and $15.7 billion, or between $11 and $12. We adjusted the free cash flow of cars between $11 billion and $13 billion.
Deutsche Bank, UBS, Barclays and Bernstein have been one of GM’s stock downgrades since the 25% auto rate came into effect on April 3rd.
GM’s stock remains overweight with a price target of $53.91 per share, according to an average estimate compiled by FactSet.
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