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General Motors (GM) is set to report first quarter earnings tomorrow — Tuesday, April 29 — with questions looming over the automaker's ability to maintain guidance amid tariff concerns.
Yahoo Finance Senior Reporter Pras Subramanian breaks down how GM’s exposure to global manufacturing and evolving EV strategy could impact results.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
General Motors is giving up to report first quarter results Tuesday morning. The latest results come as automakers, we know, grapple with President Trump's auto tariffs, now finances Pras Subramanian turns us now with a closer look, Pras.
A big question here is, you know, are they gonna keep maintain guidance, right? Which is I don't think it's going to happen, right? So the issue full year guidance at the end of last quarter, uh, assuming, they made the assumption that no tariffs and EV tax credits remain in place. Obviously we have tax and we have tariffs. Tax credits still there, a big changer. So, you know, how does that adjust that prior guidance they're talking about? 13.7 to 15.7 billion EBIT. That was that projection, uh, similar to last year, uh, but analysts of all stripes think this is not going to be not going to remain in place because of the fact that they have a heavy exposure to places like Mexico, Canada, and even South Korea for some of their cheaper cars like the Trax and the Trailblazer. So, I'm gonna keep an eye on that, just high level numbers. Revenue 43 billion or thereabouts, adjust EPS $2.72.
Um, remind us, uh Pras, where GM is in the EV landscape at this point and in its EV journey if you will.
You know, their EV journey has evolved. Uh they were kind of criticized for slow rolling that out, right? And now they have basically EVs in every segment from pickups to small cars like the Equinox EV, uh, even their, even the Corvette, the Corvette E-Ray that's electrified, not full EV, but it's electrified, right? So they have a kind of a wide swath of EV products and and those sales have been doing quite well, but you know, they're still losing money on these cars, and they, they, they have a profit path of certain you know, a variable profit on EVs coming up that that they want to hit. I think they actually hit that last quarter, but you know, it's one of these profitably metrics that are, you know, yes, made money, but there's a huge, heavy investment there with fixed costs.
Switch your gears. Uh Ford's board declaring a dividend for second quarter 25?
Very interesting. Uh I just got this alert here, 15 cents a share here. They don't report earnings till May 5th. And normally, they've declared the dividends on the day they report earnings. Hm. Who's reporting tomorrow? GM. Who might suspend I Who could potentially suspend a dividend? Pull guidance? GM, right? It's just sort of rubbing a little salt in the wound that might come up tomorrow. I'm not saying it's going to happen, but I think it's very interesting timing that they're declaring this dividend right now when they don't have earnings till next week.
Right, and the stock by the way is not doing anything in reaction to this so.
Right, right.
So.
So I'm just saying, not trying to say anything is going to happen, but I thought it was really interesting.
Interesting timing. We'll wait and see. Thank you, Pras.
I like interesting things. Yeah. Interesting. Yeah.
