Welcome to Extreme Investor Network, where we provide you with the latest and most valuable business news to help you make informed investment decisions. Today, we are diving into the world of traditional Detroit automakers and what to expect from their second-quarter results.
General Motors (GM) is expected to be the standout among Detroit automakers, with stable sales and vehicle prices for the first half of the year. Analysts forecast a solid adjusted profit of $2.75 per share, up 44.2% from the previous year, and $45.46 billion in revenue, up 1.6% from the prior-year period.
On the other hand, Ford Motor is expected to report adjusted earnings per share of 68 cents for the second quarter, representing a 5.2% decrease from the previous year. Ford’s automotive revenue is projected to increase by 3.8% to $44.02 billion.
GM will report earnings before markets open on Tuesday, followed by Ford on Wednesday afternoon and Stellantis on Thursday morning. Analysts anticipate GM to guide toward the higher end of its 2024 guidance or even raise it again, while outlooks for Stellantis and Ford are less clear.
Barclays analyst Dan Levy and Evercore analyst Chris McNally are optimistic about GM and Ford, expecting both companies to post solid second-quarter results and potentially raise their 2024 guidance. Ford’s guidance includes adjusted EBIT of $10 to $12 billion and free cash flow of $6.5 to $7.5 billion, while GM’s guidance forecasts adjusted earnings of $12.5 to $14.5 billion and adjusted automotive free cash flow of $8.5 to $10.5 billion.
In contrast, Stellantis is facing challenges in North America due to past mistakes that led to sales declines and bloated inventories. However, the company remains profitable and expects an adjusted operating income margin between 10% and 11% for the first half of the year.
As investors await the earnings reports, they will also be looking for updates on electric vehicle plans, capital spending, and rising new vehicle inventory levels in the U.S. Stay tuned for more insights and analysis on the latest trends in the business world, only at Extreme Investor Network. Let us help you navigate the dynamic landscape of investing with expert analysis and valuable resources. Stay ahead of the curve and make informed investment decisions with us.
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