GM is expected to beat earnings in Q1 with revenue decline but EPS growth

From Nasdaq: 2025-04-25 09:13:00

General Motors (GM) is set to report first-quarter 2025 results on April 29, with estimated earnings of $2.66 per share and revenues of $42.37 billion. Estimates indicate a 1.5% increase in earnings but a 1.5% decrease in revenues year over year.

For 2025, GM’s revenue estimate is $179.3 billion, a 4.3% decline, while the EPS estimate is $11.21, a 6% growth. The company has consistently beaten earnings estimates in the past four quarters, with an average surprise of 15.81%.

GM is expected to beat earnings this quarter with an Earnings ESP of +7.40% and a Zacks Rank #3. The company sold 693,363 units in Q1, up 17% year over year, leading the U.S. auto industry. Retail sales surged 15%, and EV sales grew by 94%.

In China, GM delivered 442,000 vehicles, with new energy vehicle sales up 53.2%. The company projects growth in wholesale vehicle sales volumes in North America and increased revenues and operating income in the GMNA segment. However, GMI unit sales are expected to decline.

GM’s stock has declined 12% year to date, outperforming the auto sector. The company is trading at a lower forward sales multiple compared to industry peers like Tesla and Ford. Despite headwinds, GM’s long-term prospects remain strong.

GM ended 2024 with solid financials, returning $7.6 billion to shareholders. The company is confident in its EV portfolio and cost-cutting efforts. While near-term challenges exist, GM’s long-term outlook is positive, making it a potential buy for investors looking at a solid automaker with growth potential.



Read more at Nasdaq: GM Q1 Earnings Preview: Should You Buy the Stock Before the Results?