It’s mostly about the outlook for
when the company reports fourth-quarter numbers Tuesday morning.
Investors don’t want a negative earnings surprise to finish out 2022. Wall Street expects GM (ticker: GM) to report earnings per share of $1.69, operating profit of $3.2 billion, and sales of $40 billion.
Operating profit is always a key number for investors. At $3.2 billion, GM would generate operating profit of about $13.9 billion for the the full year, near the midpoint of its guidance range of $13 billion to $14 billion, first provided by the company in early 2022.
For the fourth quarter of 2021, GM reported earnings per share of $1.35, operating profit of $2.8 billion, and sales of $33.6 billion.
Looking ahead, investors will also want to see that GM can navigate the difficult operating environment that includes rising interest rates, falling vehicle prices and more sales of electric vehicles.
Wall Street currently expects GM will earn operating profit of about $10.2 billion in 2023, down from almost $14 billion expected for 2022.
Investors should brace for some volatility no matter what the company says. Options markets imply the stock will move about 6%, up or down, after earnings. GM shares rose almost 4% after the company reported third-quarter numbers.
GM will host a conference call at 8:30 a.m. eastern time to discuss results.
GM stock fell 4.4% on Monday ahead of earnings. The
Dow Jones Industrial Average
ended 1.3% and 0.8% lower, respectively.
Write to Al Root at firstname.lastname@example.org