Stock Story -
Automotive manufacturer General Motors (NYSE:GM) will be reporting earnings tomorrow before market hours. Here’s what to look for.
General Motors beat analysts’ revenue expectations by 5.9% last quarter, reporting revenues of $47.97 billion, up 7.2% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ operating margin estimates and EPS estimates.
Is General Motors a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting General Motors’s revenue to be flat year on year at $44.38 billion, slowing from the 5.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.40 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 4 downward revisions over the last 30 days (we track 11 analysts). General Motors has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4.1% 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 2.2%, beating analysts’ expectations by 8.7%, and Byrna reported revenues up 194%, in line with consensus estimates. Richardson Electronics traded down 2.5% following the results while Byrna was also down 18.4%.
Read the full analysis of Richardson Electronics’s and Byrna’s results on StockStory.
There has been positive sentiment among investors in the industrials segment, with share prices up 3.3% on average over the last month. General Motors is up 2.5% during the same time and is heading into earnings with an average analyst price target of $55.53 (compared to the current share price of $49.23).