Mary Motors, Chairman and CEO of General Motors, visits one of the company’s facilities in Warren, Michigan, on April 1, 2020, to manufacture Level 1 face masks.
General Motors is expected to report its second quarter earnings to the bell on Wednesday as the automaker tries to recover from it Coronavirus pandemic These are closed factories and destroyed sales.
John Murphy, an analyst at Bank of America’s Merrill Lynch, said the second quarter should be “the toughest in modern history for the automotive industry,” according to companies that spent nearly a few months grappling with an almost zero environment. “”
Other industry investors and executives have described the second quarter as “unprecedented” and probably the worst three months of the year.
Wall Street expects this based on the average analyst estimates made by Refinitive.
- EPS: A loss of $ 1.77 per share.
- Revenue: $ 17.3 billion expected.
Watch analysts and investors See how much money GM burned in the quarter as well as all guidelines for the rest of the year and beyond regarding the strength of the balance sheet and US production that Restarted in mid-May after a shutdown of about two months.
GM expected to spend between $ 7 billion and $ 9 billion in the second quarter. However, this depended in part on how much US sales declined. This estimate is based on 8-10 million monthly sales that were made in April.
Of the automakers in Detroit, GM should be best positioned to weather a crisis as big as the coronavirus pandemic. For years, the automaker has been aggressively cutting costs and leaving unprofitable markets, including Europe, to strengthen its balance sheet.
GM’s US vehicle in the second quarter Sales decreased 34% from a year ago, the company said earlier this month. That was in line with the industry.
GM reported a net profit in the second quarter $ 2.4 billion last year on new revenue of $ 36.1 billion.
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