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FMP

General Motors (NYSE:GM) Q4 Earnings Preview and Financial Insights

  • General Motors is set to release its Q4 earnings with an expected EPS of $1.75 and revenue of approximately $43.3 billion.
  • The company has consistently exceeded EPS estimates over the past four quarters, indicating strong performance.
  • GM's potential EV partnership with Hyundai and its dividend offerings are key points of interest for investors.

General Motors (NYSE:GM) is a leading automaker known for its wide range of vehicles, including electric and autonomous cars. As GM prepares to release its fourth-quarter earnings on January 28, 2025, Wall Street estimates an earnings per share (EPS) of $1.75 and revenue of approximately $43.3 billion. This release is part of a significant week for the stock market, with other major companies like Apple, Microsoft, and Tesla also announcing their financial results.

The Zacks Consensus Estimate aligns with Wall Street's expectations, projecting an EPS of $1.75 and slightly higher revenue of $43.7 billion. This EPS estimate suggests a substantial year-over-year growth of 41%, while the revenue estimate indicates a modest increase of 1.75%. Over the past four quarters, GM has consistently exceeded EPS estimates, highlighting its strong performance.

Looking ahead, the Zacks Consensus Estimate projects GM's 2025 revenues at $178.6 billion, a 2% decline from the previous year. However, the EPS for 2025 is expected to grow by approximately 4%, reaching $10.76. This growth reflects GM's ability to enhance profitability despite a slight revenue decline.

Recently, GM's shares have gained attention due to reports of a potential EV partnership with Hyundai for the North American market. This development has sparked interest among investors, especially those interested in GM's dividend offerings. GM currently provides an annual dividend yield of 0.89%, with a quarterly dividend of 12 cents per share.

For investors seeking income from GM's dividends, an investment of approximately $677,750 or about 12,500 shares would be needed to earn $500 monthly. Alternatively, to earn $100 monthly, an investment of $135,550 or around 2,500 shares would be required. GM's financial metrics, such as a P/E ratio of 5.43 and a debt-to-equity ratio of 1.80, provide insights into its valuation and financial health.