General Motors Stock Sees Rally Ahead Of Earnings, Here's What To Expect On Tuesday

Shares of General Motors Co GM are trading over 2% higher on Monday, ahead of the Detroit, Michigan-based automaker’s second-quarter earnings print set to be issued Tuesday before the opening bell. Here’s what you need to know.

Earnings, By The Numbers: General Motors is expected to issue earnings of $1.85 per share on revenues of $42.64 billion, according to data from Benzinga Pro, while other estimates point to a slightly lower EPS of $1.83 and revenues of $42.36 billion.

What The Street Expects: Analysts are generally upbeat about GM’s earnings print, according to Investors Business Daily. Deutsche Bank AG DB is optimistic about GM’s ability to beat second-quarter expectations. The investment bank expects GM to post better-than-expected sales volumes due to efficient pricing action.

Analysts at Citigroup Inc C also see the potential for GM. They predict “ample upside” from strong North American pricing, in a note issued earlier this month. Even with potential disruptions in the second half of this year, GM could exit 2023 with an annualized EPS well above the consensus at the start of the year, Citigroup said.

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Though, it’s not all positive. Deutsche Bank also noted potential price pressure risk into the second half of 2023 and 2024, especially if consumer demand weakens.

EV's On Watch: Investors are particularly interested in updates on the first-ever all-electric Silverado pickup, IBD said, as GM faces competition from Tesla Inc's TSLA Cybertruck, and already released models from Ford Motor Co F and Rivian Automotive RIVN.

Pricing of the new Silverado will be a crucial factor, Deutsche Bank noted.

GM Price action: Shares of General Motors are trading 2.14% higher to $39.38, according to Benzinga Pro.

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