General Motors (GM) is poised to release its first-quarter earnings report on Tuesday, a highly anticipated event for investors. While the quarterly figures hold significance, the spotlight will likely be on the company’s guidance for 2025, especially considering the backdrop of increasing auto tariffs instituted by the Trump administration.

The Impact of Tariffs

The ongoing 25% tariffs on imported vehicles have introduced substantial uncertainty within the automotive industry, leading to downgrades of numerous automotive stocks, including GM. Despite these challenges, several analysts believe that GM may outperform first-quarter estimates, as consumers are reportedly purchasing vehicles in anticipation of price hikes due to tariffs.

Wall Street’s Expectations

According to data collected by LSEG, analysts expect GM’s earnings for the first quarter to reflect the following:

• Earnings per share (adjusted): $2.74
• Revenue: $43.05 billion

If met, these projections would indicate a slight revenue increase of 0.1% year-on-year and a 4.6% rise in adjusted earnings per share. In comparison, GM reported $43.01 billion in revenue and a net income of $2.98 billion during the same quarter last year.

Guidance for 2025

GM has historically updated its annual guidance in conjunction with its first-quarter earnings reports. However, the company has not yet disclosed how it plans to cope with the rising costs driven by tariffs. In a previous statement, CEO Mary Barra mentioned that GM might be able to offset up to 50% of the projected tariffs on imports from Mexico and Canada. Nonetheless, further details on tariff impacts have yet to be released.

The 2025 guidance shared by GM earlier this year projects:

• Net income attributable to stockholders: $11.2 billion to $12.5 billion
• Adjusted earnings before interest and taxes: $13.7 billion to $15.7 billion
• Adjusted automotive free cash flow: $11 billion to $13 billion

Market Reactions

Multiple financial institutions, including Deutsche Bank, UBS, Barclays, and Bernstein, have revised their ratings for GM’s stock following the implementation of auto tariffs on April 3. Despite these downgrades, GM’s stock maintains an overweight rating with an average price target of $53.91 per share, as per FactSet analysis.

Looking Ahead

As the situation continues to evolve, stakeholders are encouraged to stay informed for future updates regarding GM’s financial performance and strategic plans.