Here’s what GM reported versus what Wall Street is expecting, based on average analysts estimates compiled by Refinitive.
- EPS: A loss of 50 cents a share versus a loss of $1.77 per share expected.
- Revenue: $16.8 billion versus $17.3 billion expected.
Other investors and industry executives have called the second quarter “unprecedented,” and likely the worst three months of the year.
GM said it expected to spend between $7 billion and $9 billion in the second quarter, however that was partially contingent on how much U.S. sales fell. That estimate is based on 8 million to 10 million sales a month, which only occurred in April.
Of the Detroit automakers, GM was expected to be best positioned to weather a crisis as big as the coronavirus pandemic. For years, the automaker has aggressively cut costs and exited unprofitable markets, including Europe, to fortify its balance sheet.
GM’s second-quarter U.S. vehicle sales fell 34% from a year ago, the company said earlier this month. That was in-line with the industry.
GM reported second-quarter net income last year of $2.4 billion on new revenue of $36.1 billion.