The Good, the Bad, and the Ugly in GM's Q2: Is the Stock a Buy?
Like most full-line automakers, General Motors (NYSE: GM) has been busy pumping the brakes on its electric vehicle (EV) ambitions and refocusing on its gasoline powered vehicles to power profits during the slower-than-anticipated transition. That refocus led to record revenue during the second quarter and first half of 2024, with raised guidance as the cherry on top. Let's dive into the major takeaways, both good and bad, from the second quarter.
Let's make one thing clear from the start, there was far more good to take away from General Motors' second quarter than bad. The second quarter recorded the company's best quarterly U.S. sales result since the fourth quarter of 2020, with strong pricing and incentives below industry average, helping margins and profitability.
GM has recorded eight consecutive quarters of year-over-year U.S. retail sales growth, which drove company revenue compound annual growth rate (CAGR) to roughly 16% over the past 24 months. Second-quarter revenue increased 7.2% to a record $47.94 billion, with adjusted earnings before interest and taxes (EBIT) surging 37% to $4.4 billion. GM raised full-year adjusted EBIT guidance by $500 million to a range of $13 billion to $15 billion, and raised its adjusted automotive free-cash-flow guidance by $1 billion to a range of $9.5 billion to $11.5 billion.
Source Fool.com
General Motors Corp Stock
Our community is currently high on General Motors Corp with 37 Buy predictions and 7 Sell predictions.
As a result the target price of 48 € shows a slightly positive potential of 18.14% compared to the current price of 40.63 € for General Motors Corp.
