General Motors maintains 2022 guidance despite rising costs and supply chain issues
DETROIT – General Motors is set to report its first-quarter earnings after the bell Tuesday.
Here’s what Wall Street is expecting:
Adjusted EPS: $1.68, according to Refinitiv consensus estimatesRevenue: $37.01 billion, according to Refinitiv consensus estimates
GM is among the first major automakers to report its first-quarter results. Investors are watching the report closely as a gauge of the auto industry’s ongoing production and supply chain problems.
GM previously forecast a pretax profit of between $13 billion and $15 billion for 2022, but Evercore ISI analysts suggested the company could suffer “a small potential cut” to its top-end guidance due to higher costs and parts issues.
In addition to inflation and other macroeconomic factors, the global automotive industry has been battling supply chain problems caused by the coronavirus pandemic for more than a year — specifically, supplies of crucial semiconductor chips that are used throughout vehicles.
The ongoing war in Ukraine as well as recent factory shutdowns in China due to Covid-19 outbreaks have further exasperated the industry’s supply chain challenges.
Investors will also be looking for any progress or updates on GM’s plans for autonomous and electric vehicles, including a planned $35 billion investment in the technologies through 2025. GM doesn’t typically break out such costs on a quarterly basis, though rival Ford Motor has promised to begin doing so next year.
Shares of GM are down roughly 34% so far in 2022. Its market cap is about $55 billion, down from more than $90 billion at the beginning of the year.
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