GM Earnings on Deck

General Motors (NYSE:GM) will unveil its latest earnings on Wednesday, October 31, 2012. General Motors develops, produces and markets cars, trucks and parts worldwide.

General Motors Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 61 cents per share, a decline of 40.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 75 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 63 cents during the last month. For the year, analysts are projecting net income of $3.15 per share, a decline of 18.8% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 15 cents, coming in at profit of 90 cents per share against an estimate of net income of. The company also topped expectations in the first quarter.

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A Look Back: In the second quarter, profit fell 38.3% to $1.85 billion (90 cents a share) from $2.99 billion ($1.54 a share) the year earlier, but exceeded analyst expectations. Revenue fell 4.5% to $37.61 billion from $39.37 billion.

Stock Price Performance: Between August 1, 2012 and October 25, 2012, the stock price rose $3.97 (20.2%), from $19.66 to $23.63. The stock price saw one of its best stretches over the last year between December 28, 2011 and January 6, 2012, when shares rose for seven straight days, increasing 15.4% (+$3.06) over that span. It saw one of its worst periods between June 19, 2012 and June 27, 2012 when shares fell for seven straight days, dropping 9.6% (-$2.08) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 2.2% in revenue from the year-earlier quarter to $35.92 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 7.8% in the third quarter of the last fiscal year, 3% in the fourth quarter of the last fiscal year and 4.3%in the first quarter before dropping in the second quarter.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 37.6% over the past four quarters.

Analyst Ratings: With 10 analysts rating the stock a buy, one rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.24 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.22 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 1.5% to $70.23 billion while liabilities rose by 0.1% to $56.65 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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