General Motors Q4 2017 Earnings Preview

February 2nd, 2018 by Trefis Team
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General Motors (NYSE:GM) will announce its Q4 2017 earnings on February 6 2018 and based on the details shared by the company at a recent auto conference held by Deutsche Bank, the company is likely to report record earnings of $6.50 in 2017 and has projected steady profits for 2018. This is higher than our estimate of a diluted EPS (Earnings per share) of $5.90 for the company (based on an earlier guidance where the company expected the EPS to be in the range of $6.00-$6.50)

Below is a summary of General Motors’ revenues and EPS for the first three quarters of 2017 and consensus analyst expectations for Q4 2017:

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Key Trends:

Focus on SUV’s and Trucks likely to drive growth: According to GM its new launches of trucks and SUVs along with an increased focus on existing profitable models are likely to drive growth in the future. The company believes that it has an opportunity to increase sales and generate a higher average price per vehicle in the trucks segment.

Focus On Electric Vehicles: General Motors is likely to launch two electric  crossover SUVs in the next 18 months and is focused on launching 20 new electric vehicles by 2023. The company’s new modular platform, which is likely to be ready by 2021, will reduce battery costs significantly, which is likely to give it a competitive edge in this segment. (Read Here’s How General Motors Plans To Compete Effectively With Tesla)

It appears that General Motors has navigated the challenging U.S. automotive market effectively and will be able to drive growth and profitability in the next few years with its focus on SUVs and pickups. We will be keenly looking out for the company’s guidance for 2018 and 2019 in its Q4 2017 results.

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