General Motors (NYSE:GM) is expected to report a relatively positive fourth-quarter profit after the markets close Tuesday, capping off an unprecedented year of supply chain issues that continue to linger in 2022.
Wall Street analysts estimate the Detroit automaker will report $1.19 per share in adjusted earnings and $34 billion in revenue, according to Refinitiv estimates. That revenue would be lower by 9.3% compared with a year earlier, largely due to constrained production caused by an ongoing global shortage of semiconductor chips.
GM’s fourth-quarter adjusted EPS is expected to be its lowest of the year, and down from $1.93 from the fourth quarter of 2020.
While investors will be monitoring GM’s quarterly results, they’re more interested in the automaker’s guidance for this year as well as insights on outside factors that could impact the company in 2022.
GM CFO Paul Jacobson told investors at a Credit Suisse conference in December that the company expects "another strong year" in 2022.
Wall Street analysts expect GM and other automakers to be conservative in their earnings guidance this year, continuing a trend from 2021.
Analysts estimate GM will earn $6.93 per share in 2022, according to average estimates. That compares to expectations of $6.83 in 2021, including $5.67 per share through the first three quarters of 2021.
In December, Jacobson said fourth-quarter results were coming in stronger than expected and increased GM’s adjusted earnings forecast for the year to about $14 billion, up from guidance that was already raised once to a range of $11.5 billion to $13.5 billion.
Shares in GM hesitated 17 cents to begin Tuesday at $52.56.
