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.