NYSE$GM

General Motors Co · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

GM's second-quarter results demonstrated business resilience amidst the pandemic, with near breakeven in North America and continued investment in key product programs.

GM's Q2 2020 results were significantly impacted by the COVID-19 pandemic, with a 53% decrease in net revenue compared to Q2 2019. However, the company demonstrated resilience through austerity measures and cost savings initiatives, achieving near breakeven in North America and maintaining strong automotive liquidity.

  • EPS-diluted was $(0.56) and EPS-diluted-adjusted was $(0.50).
  • GMNA neared EBIT-adjusted breakeven despite eight weeks of lost production.
  • The company ended the quarter with $30.6 billion in automotive liquidity.
  • Chevrolet Silverado and GMC Sierra sales were strong, leading to year-over-year U.S. market share growth.

Headline financials

Total Revenue

$16.8B

Previous: $36.1B-53.5%
EPS (adj)

-$0.50

Previous: $1.64-130.5%
Capital Expenditures

-$2.34B

Previous: -$3.48B+32.8%
Free Cash Flow

-$3.09B

Previous: -$1.06B-192.4%
Net Income

-$758M

Previous: $2.42B-131.3%
Operating Income

-$1.21B

Previous: $2.49B-148.8%
Gross Profit

$16.8B

Previous: $36.1B-53.5%
Cash & Equivalents

$28.2B

Previous: $17.1B+65.3%
Total Assets

$238B

Previous: $234B+1.6%

Revenue & EPS history

GM · Revenue · Quarterly

$16.8B

Q2 2020-53.5%vs Q2 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

GM · $200M total across 1 segment · Q2 2020

  • GM Financial
    $200M

Forward guidance

GM is focused on an all-electric future and continues to invest in key product programs and launches.

Tailwinds

  • Construction has started for the Ultium battery cell manufacturing facility in Lordstown, Ohio.
  • Product development work on GM’s future EV and AV portfolios continues to progress at a rapid pace.
  • Production timing remains on track for the Cadillac LYRIQ, Cruise Origin and GMC HUMMER EV.
  • Buick expanded its EV portfolio and launched the VELITE 7 and VELITE 6 PHEV in China.
  • GM is working to increase U.S. dealer stocks and has restarted plants to pre-pandemic shift levels.

Headwinds

  • U.S. second-quarter vehicle sales declined about 34 percent compared to a year ago.
  • Results were impacted by significantly reduced industry demand due to the COVID-19 pandemic.
  • Dealer inventories are tight due to the production shutdown in the first and second quarters.
  • GM International results were affected by lower wholesales as a result of the COVID-19 pandemic.
  • GM Financial results were impacted by higher credit provision expense and accelerated depreciation expense primarily related to COVID-19.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.0%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.5%

Avg return

30 days after

42%

27 / 65 earnings

Positive

+15.8%

Q3 2025

Best reaction

-9.3%

Q3 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.0%-2.8%+7.7%
Q4 2025+8.6%+5.8%+1.7%
Q3 2025+15.8%+20.1%+17.3%
Q2 2025+1.5%+2.7%+5.3%
Q1 2025-0.6%-4.1%+2.9%
Q4 2024-8.9%-9.9%-13.3%
Q3 2024+8.2%+6.4%+13.8%
Q2 2024-6.2%-11.0%-6.3%
Q1 2024+4.3%+6.1%+1.2%
Q4 2023+9.6%+9.9%+15.8%
Q3 2023-0.7%-6.8%-3.8%
Q2 2023-2.6%-3.2%-16.3%
Q1 2023-6.0%-3.6%-5.5%
Q4 2022+8.3%+13.3%+8.9%
Q3 2022+6.0%+8.8%+12.3%
Q2 2022+0.5%+5.0%+17.0%
Q1 2022-2.9%-4.8%-6.0%
Q4 2021+1.5%-2.7%-14.8%
Q3 2021-5.5%-3.3%+4.9%
Q2 2021-5.9%-6.8%-15.7%
Q1 2021+6.1%+3.7%+14.5%
Q4 2020-4.6%-4.4%+5.7%
Q3 2020+6.3%+16.6%+26.0%
Q2 2020-4.3%-2.6%+14.0%
Q1 2020+0.5%-6.4%+16.7%
Q4 2019-0.1%-0.3%-16.5%
Q3 2019+3.5%+3.6%-1.4%
Q2 2019-1.4%-3.1%-8.1%
Q1 2019-3.1%-3.0%-13.0%
Q4 2018-1.7%-1.7%-3.3%
Q3 2018+8.7%+8.1%+13.1%
Q2 2018-6.9%-4.6%-8.9%
Q1 2018-1.2%-4.4%+0.5%
Q4 2017+7.2%+4.9%-4.3%
Q3 2017-0.1%-1.1%-1.9%
Q2 2017-0.6%-0.1%-0.8%
Q1 2017-1.0%-3.1%-4.3%
Q4 2016-4.6%-4.5%+0.0%
Q3 2016-4.2%-5.0%+2.7%
Q2 2016+2.1%+2.1%+1.1%
Q1 2016-0.0%
Q4 2015-3.4%
Q3 2015+5.8%
Q2 2015+2.5%
Q1 2015-4.2%
Q4 2014+6.7%
Q3 2014-4.1%
Q2 2014-6.3%
Q1 2014-1.9%
Q4 2013+2.5%
Q3 2013+2.5%
Q2 2013-1.3%
Q1 2013+6.4%
Q4 2012-3.2%
Q3 2012+10.3%
Q2 2012+1.9%
Q1 2011-2.5%
Q4 2011-2.5%
Q1 2012-2.5%
Q4 2010+0.3%
Q1 2010+0.3%
Q3 2010-9.3%
Q3 2011-9.3%
Q2 2011-5.5%
Q2 2010-5.5%

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