General Motors (GM) is expected to outshine its Detroit counterparts as it prepares to announce its second-quarter results this week. Analysts predict that GM will report a substantial adjusted profit of $2.75 per share, representing a 44.2% increase from the previous year, with revenue standing at $45.46 billion, up by 1.6%.
In contrast, Ford Motor is projected to post a decrease in adjusted earnings per share by 5.2% to 68 cents, with automotive revenue expected to rise to $44.02 billion. GM will release its earnings before the markets open on Tuesday, while Ford’s report is scheduled for Wednesday afternoon, followed by Stellantis on Thursday morning.
Industry experts anticipate that GM will provide guidance towards the higher end of its already revised forecasts for 2024, potentially leading to further adjustments. However, opinions on Stellantis and Ford’s outlooks are more divided.
Barclays analyst Dan Levy believes that both Ford and GM will exceed expectations, driven by favorable pricing and anticipated boosts in guidance for the year. Evercore analyst Chris McNally remains optimistic about GM’s prospects over Ford due to competitive pricing strategies.
Ford’s guidance includes adjusted earnings before interest and taxes between $10 billion and $12 billion, along with free cash flow targets. On the other hand, GM has projected adjusted earnings and free cash flow in the range of $12.5 billion to $14.5 billion and $8.5 billion to $10.5 billion, respectively.
Stellantis faces challenges in North America, with CEO Carlos Tavares acknowledging past errors that impacted sales and investor confidence. Despite these setbacks, the company reiterates its 2024 financial forecasts, including an adjusted operating income margin between 10% and 11% for the first half of the year.
Investors will closely monitor updates on electric vehicle initiatives, capital investments, and inventory levels across all three automakers. Analysts emphasize the importance of monitoring rising inventory levels, which could influence stock performance amidst a changing landscape in the auto industry.
Ultimately, the future direction of GM, Ford, and Stellantis will heavily depend on their ability to adapt to evolving market trends and deliver on their strategic objectives in the coming quarters.
