On Wednesday, May 5th, GM will report its Q1 2021 earnings. Overall, analysts expect the Detroit-based automaker to post very strong results of $1.02 per share, which would represent year-over-year growth of 64 percent (from $0.62 per share) on revenue of roughly $33.3 billion (up roughly 2 percent).
GM sales in the United States, the automaker’s most profitable and revenue-generating market, increased 4 percent to 642,250 vehicles during the first quarter of the year. Sales increased at Buick, Cadillac and GMC brands, while decreasing at Chevrolet:
- Chevrolet sales decreased 1.7 percent to 427,950 units
- Cadillac sales increased 22.9 percent to 37,277 units
- Buick sales increased 35.2 percent to 45,784 units
- GMC sales increased 10.5 percent to 131,239 units
Critically, General Motors also set a first-quarter record with average transaction prices at $40,353.
Some analysts believe that the strong first quarter earnings will help GM stock hit reach a new all-time high. In fact, based on Tipranks data, 12 analysts who have offered stock ratings for GM over the last three months are forecasting the average stock price of $69.12, with a high forecast of $85 and a low of $62. Not one of those 12 analysts rated GM stock a “Sell”, one rated it a “Hold” and 11 rated it a “Buy.”
An interesting data point is Morgan Stanley, which recently gave GM a base price target of $80 per share, with a high of $120 and a worst-case scenario of $32 per share. Bank of America lifted its price expectation from $72 to $80 per share while Credit Suisse raised the target price to $72 from $68.
Strong Q1 2021 earnings would help GM stock hit a new all-time highs. Shares grew 37 percent thus far in 2021, having opened the year at $40.51 per share. Shares closed Tuesday down $1.18 or 3.17 percent to $55.34.
Key elements to watch for during the report will include how GM is navigating the ongoing microchip shortage, which has sapped the automaker of roughly 80,000 units of production in North America. A tire shortage of similar proportions seems to be looming on the horizon.
GM Authority will be here to bring you coverage of the earnings as they happen tomorrow, so be sure to subscribe for more GM financial news and obsessive GM news coverage.
Comments
I think GM is going to beat on both revenue and net income. Wall Street is expecting $1.04 per share, I think it will be closer to $1.75 per share. We will know in a few hours who is right… 🙂
Yes, buy lowercase gm stock even though the CEO just cashed out, even though they can’t make cars due to logistical errors, even though they’re outsourcing jobs, even tough BEV sales are abysmal, even though they are losing market share to toyota. BuY gM sHaRes tHo. I guess a fool and their money are soon parted.
Clearly you have no idea about anything financially, gm has the best price to earnings ratio in the automotive industry, but I don’t expect you to know what that means. Mary Barra did not cash out, she exercised her options which is how a CEO typically gets paid, Mary holds $150m in gm stock currently. Oh BTW, gm released Q1 earnings, a blowout, double expectations, stock rising fast this morning, again not that you would be smart enough for any of these technical terms.
She cashed in over half of her options thus far, I’m aware of what she does. Also aren’t stock prices not technically released until 930est… I’m not saying they won’t go up, I’m just saying I won’t by buying.
I would not blame Mary for cashing in options, and investing in other things, that just shows how smart she is. People who keep all their eggs in one basket or industry are naive. I have a lot of investment in the auto industry, but also defense, consumer staples, tech, etc… and GM is my biggest auto holding, but I also have some F, TSLA, and a couple of startups. I am investing to create generational wealth for my family, I do not believe in blind loyalty to one investment. Stock market has trading 24 hours a day, trading after hours though is a bit more risky, does not perfectly represent broader market sentiment. Today looks like it’s going to be a very green day, so I will not be buying. GM is up a bit over 4% right now. I only buy on days the markets are all red and everyone is panicking.
Good for you 👍
great strategy ……. as long as the market keeps going up.
GM has made a lot of moves since the bail out that has helped them not only in good times but in troubled times to remain profitable.
Some MFGs are being impeached harshly with the chip issue but GM is still doing well.
For too many years GM’s we are too large to fail kept them from cutting waste and in time it ate them up.
Read the book on a clear day you can see GM and just see the failures they had. Also Bob Lutz book Car Guys vs Bean Counters. He points out the mess GM was when he arrived. Much of that is gone today. Suppliers selling the same part to GM under 3 part numbers at three prices? So little oversight.
Mary Barra said on the earnings call that just ended that the chip issue will be much worse in Q2, and there will be more production stoppages. GM is affected by the Renesas fire in Japan, so that will create additional challenges ahead. It sounds like Q2 is going to be a tough one for GM, they are guiding a very small profit.
There are always challenges that is just life in a corporation.
The grease in the gear is how you position the company to be able to take advantages of the good times and set to take on the challenges.
Like where I work we were prepared by investing in technology that let us work from anywhere. With a flick of a switch we were working from home.
This too a challenge and turned it into a record sales year.
In the case of GM they are faced with chip and production issues this last year. But they were able to target the most popular models and profitable models to help negate the problems of a drop in production.
When stuck with lemons make margaritas.
Shortages are not going away soon as the markets are going to take time to regulate. They will continue work to make sure the models that benefit the bottom line get first call on parts no matter what they are. They will also leverage their relationships with mfgs to get all they can. So if they have to put on a different brand of tire so be it.
Regarding looming tire shortage: if all large scale consumers of rubber v-belts used Extreme Industrial Coatings sheaves they would have belts that lasted for 4 or more years rather than 4-8months. One paint shop can use nearly a ton of rubber belts per year. Not to mention save on air handling power 10-20%.