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General Motors Co. (NYSE GM) shares are experiencing a surge of over 2% on Monday as investors eagerly anticipate the release of the automaker's second-quarter earnings report scheduled for Tuesday before the opening bell. Here's what you need to know.
Anticipated Earnings
According to data from Benzinga Pro, General Motors is expected to announce earnings of $1.85 per share on revenues of $42.64 billion for the second quarter. Alternative estimates point to a slightly lower EPS of $1.83 and revenues of $42.36 billion.
Positive Analyst Expectations
Analysts are generally optimistic about GM's earnings report. Deutsche Bank AG is confident in GM's potential to surpass second-quarter expectations, anticipating better-than-expected sales volumes due to efficient pricing action.
Citigroup Inc also sees promise for GM, predicting "ample upside" from strong North American pricing. They believe GM has the potential to exit 2023 with an annualized EPS significantly higher than the consensus at the beginning of the year, despite possible disruptions in the second half of the year.
Potential Challenges
Despite the overall positive outlook, Deutsche Bank notes the possibility of price pressure risk in the second half of 2023 and 2024, particularly if consumer demand weakens.
Focus on Electric Vehicles
Investors are particularly interested in updates on the first-ever all-electric Silverado pickup. GM faces competition from Tesla Inc's (NASDAQ:TSLA) Cybertruck, as well as electric models already released by Ford Motor Co and Rivian Automotive. The pricing of the new Silverado is expected to be a crucial factor in its success.
Current Share Price
As of now, General Motors' shares are trading 2.14% higher at $39.38.