Located in Detroit, General Motors Company (GM) is responsible for the design, production, and sale of trucks, crossovers, cars, and automotive components, along with offering software-centric services and subscriptions. With a market capitalization of approximately $52.7 billion, GM operates through various segments including GM North America, GM International, Cruise, and GM Financial.
The automotive behemoth is poised to unveil its third-quarter earnings prior to the market opening on Tuesday, October 21. Analysts anticipate an adjusted earnings per share (EPS) of $2.26, reflecting a 23.7% decline compared to $2.96 EPS from the same period last year. On a brighter note, GM has consistently exceeded analysts’ profit expectations over the past four quarters.
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For the fiscal year 2025, GM’s adjusted EPS is projected to reach $9.43, representing an 11% decrease from the $10.60 reported in 2024. The forecast for fiscal 2026 indicates a modest growth of 4.7% year-over-year to $9.87 per share.
Over the past year, GM’s stock has increased by 16.1%, outperforming the Consumer Discretionary Select Sector SPDR Fund (XLY), which rose by 15.9%, and the S&P 500 Index ($SPX), which gained 13.4% in the same time frame.
Despite surpassing expectations in both revenue and earnings, GM’s stock fell by 8.1% in the trading session following its Q2 earnings announcement on July 22. The company reported a 2.7% decline in automotive sales year-over-year, totaling $42.9 billion. Overall net revenues stood at $47.1 billion—a 1.8% decrease year-over-year—but above the consensus forecasts by 1.9%. The adjusted EPS fell 17.3% year-over-year to $2.53, although it beat the analyst estimates by 5.9%.
However, the significant tariffs imposed by the current federal administration led to a staggering 35.4% decline in GM’s net income on a GAAP basis, falling to $1.9 billion, raising significant concerns among investors.
Despite these challenges, analysts retain a cautiously optimistic outlook for the stock. GM currently holds a “Moderate Buy” consensus rating. Out of 29 analysts covering the stock, there are 13 “Strong Buys,” two “Moderate Buys,” 11 “Holds,” and three “Strong Sells.” The average price target of $60.69 suggests a 9.6% upside from current price levels.
As of the publication date, Aditya Sarawgi did not hold any positions in the securities mentioned in this article. All the information and data provided are for informational purposes only. This article was originally published on Barchart.com.
