Earnings

GM is set to report results before the bell. Here’s what Wall Street expects

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The GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, March 16, 2021.
Rebecca Cook | Reuters

DETROIT – General Motors announces third-quarter earnings before the markets open Wednesday.

Here’s what Wall Street expects, based on average analysts’ estimates compiled by Refinitiv.

  • Adjusted EPS: 96 cents a share
  • Revenue: $26.51 billion

The third-quarter was expected to be a rougher one than the first half of the year for GM. Analysts, however, say they expect relatively solid results, despite a global shortage of semiconductor chips that has depleted vehicle inventories and shuttered plants.

GM previously warned investors that its North American wholesale volumes would be down by about 200,000 units in the second half of 2021 compared with the first half, due to the parts problem.

The Detroit automaker has maintained its financial guidance for the year, including adjusted earnings of between $11.5 billion and $13.5 billion, or $5.40 to $6.40 a share. It earned about $6.2 billion, or $4.21 a share, during the first six months of the year.

In August, GM CFO Paul Jacobson said the automaker expected to take a hit of between $3.5 billion to $4.5 billion during the second half of the year, due to a $1.5 billion to $2 billion rise in commodity costs and lower earnings from its financial arm.

GM reported a net profit of $4 billion and an adjusted pretax gain of $5.3 billion during the third quarter of 2020. That was when dealerships and plants largely reopened after being shuttered during the second-quarter due to the coronavirus pandemic.

Shares of GM are up by 37.5% in 2021.

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