On July 2, 2024, new GMC trucks are displayed for sale at Hanis Hilltop GMC in Richmond, California.
Justin Sullivan | Getty images
General Motors Bell is ready to report the second quarter earnings before the bell on Tuesday, as investors look for the President Donald Trump‘S Auto tariff The results of the automaker and the complete year’s guidance to any update will affect.
While vehicle manufacturers are expecting relief TariffTrump’s 25% levy Imported vehicle And many auto parts remain in effect.
Amid uncertainty, GM tariff is trying to combat risks. Last month, the company announced that it would invest $ 4 billion Many American plants, which include growing or growing two mexican-made vehicles for American plants. The company also said that it will move forward last week Production Add a gas -powered SUV and construction of pickup trucks to your home state of Michigan.
While GM said in May that it still believes that it could be reduced by at least 30% of its expected cost due to tariffs, it is also Utara Its 2025 income guidance to incorporate the impact of $ 4 billion to $ 5 billion from auto tariffs. The company said in the spring that its guidance was noticed Change The Trump administration created for tariffs, including reimbursement of vehicle manufacturers for some American parts and reducing the “stacking” of tariffs on each other for the industry.
GM CEO Mary Barra At that time, he refused to say whether the company has planned to increase the vehicle prices due to tariffs.
Wall Street is expected here, according to the average estimates compiled by LSEG:
- earnings per share: $ 2.44 adjusted
- Income: $ 46.4 billion
They will mark the results of 3.3% in revenue compared to a year ago and a decline of 20.3% in adjusted income per share. GM of GM Second quarter of 2024 Revenue includes $ 47.97 billion, net income for stockholders of $ 2.93 billion and $ 4.44 billion interest and adjusted income before taxes.
The company’s full-year guidance, which it amended in May due to tariffs, included the adjusted income and $ 10 billion and $ 10 billion and $ 12.5 billion, which was below its pre-guidance, which did not take the tariff from $ 13.7 billion to $ 15.7 billion to tariffs.
The GM’s annual approach also includes net income for stockholders ranging from $ 8.2 billion to $ 10.1 billion, which is below $ 11.2 billion to $ 12.5 billion, and an automotive free cash flow between $ 11 billion and $ 13 billion has been adjusted between $ 11 billion and $ 13 billion.
Investors will also listen to the comment on GM’s commitment to electric vehicles on Tuesday.
Trump’s new tax-and-cost bill, which he signed in the law on July 4 is To end $ 7,500 tax credit for new electric vehicles and $ 4,000 for EVS after 30 September.
As a result of the abolition of tax credit, a Barclays Research Note last week predicted a slow introduction of EV models in the auto industry, while Deutsh Bank Note estimated the bridge-forward of EV sales for the automekers in the third quarter.
While GM initially set a target Especially offer EVS By 2035, it has since been said that consumer demandWhich is slower than expected, will determine its EV plans.
According to the average estimates compiled by the factset, GM’s stock is rated overweight with a price target of $ 56 per share.
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