The new GMC trucks are shown in the Sales Lot in Hilltop GMC in Richmond, California, on July 2, 2024.
Justin Sullivan | Getty images
General Motors He is ready to inform the second quarter before the bell on Tuesday, while investors observe how the automotive rates of President Donald Trump will affect the results of the automobile manufacturer and for any update of the guidance of the whole year.
While car manufacturers have waited relief in tariffs, 25% of Trump in imported vehicles and many parts of cars remain in force.
Amid uncertainty, GM is trying to counteract tariff risks. Last month, the company announced that it will invest $ 4 billion in several American plants, including the production in motion or increase of two vehicles produced by Mexicans to US plants. The company also said last week that it will transfer the production of a SUV with gasoline and add trucks manufacture to its native state of Michigan.
While GM said in May that he still believes that he can mitigate at least 30% of his expected cost increases due to rates, he also reduced his 2025 profit guide to include a possible impact of $ 4 billion to $ 5 billion of automatic tariffs. The company said in spring that its guide took into account the changes that the Trump administration made to tariffs, which include reimbursement of car manufacturers for some pieces of the United States and reduce the “stacking” of tariffs with each other for the industry.
The GM CEO, Mary Barra, refused to say at that time if the company planned to raise vehicle prices due to rates.
This is what Wall Street expects, according to the average estimates compiled by LSE:
- Profit per action: $ 2.44 adjusted
- Revenue: $ 46.4 billion
These results would mark a 3.3% decrease in income compared to a previous year and a 20.3% decrease in action adjusted by action. The second GM quarter of 2024 included $ 47.97 billion in income, net income attributable to shareholders of $ 2.93 billion and adjusted profits before interest and taxes of $ 4.44 billion.
The guide of the entire company of the company, which modified in May due to tariffs, includes adjusted profits before interest and taxes of between $ 10 billion and $ 12.5 billion, below its previous orientation, which did not take into account tariffs, from $ 13.7 billion to $ 15.7 billion.
The annual GM perspective also includes the net income attributable to shareholders from $ 8.2 billion to $ 10.1 billion, below $ 11.2 billion to $ 12.5 billion, and a free automotive cash flow adjusted between $ 7.5 billion and $ 10 billion, between $ 11 billion and $ 13 billion.
Investors will also listen on Tuesday comments on GM's commitment to electric vehicles.
Trump's new tax and expenses bill, which signed on July 4, ends the fiscal credit of $ 7,500 for new electric vehicles and a $ 4,000 loan for the EVs used after September 30.
As a result of the completion of fiscal credits, a Barclays research note predicted last week a slower introduction of EV models throughout the automotive industry, while a Deutsche Bank note anticipated an attraction of EV sales for car manufacturers in the third quarter.
Although GM initially established an objective to offer exclusively EV by 2035, since then it has said that consumer demand, which has been slower than expected, will dictate its EV plans.
GM shares remain overweight with an objective price of $ 56 per share, according to the average estimates compiled by FACTSET.
This is developing news. Update to obtain additional updates.
