General Motors Q1 Earnings Preview

General Motors Company GM reports Q1 results Thursday morning.

Wall Street expects EPS of $0.96 on revenue of $38.737 billion, while the Estimize consensus is for EPS of $1.05 on revenue of $39.049 billion.

Credit Suisse analyst Dan Galves recently commented on the quarter and expected Q1 EPS of $0.96 and that FY2015 guidance would be reiterated.

Galves maintained an Underperform rating, however, due to the belief that “US automakers will be underperformers over the long-term, due to a potential US pricing correction, rising technology / regulatory costs, increasing reliance on truck volume, and increased competition from Japanese automakers who appear to be using an FX advantage to add additional content into vehicles at low prices.”

Citi analyst Itay Michaeli recently issued a note on the stock and took a bullish position on GM, rating it a Buy with a $50 price target.

“GM fits well within our auto stock selection framework and bullish sector view, which is anchored by our sector ‘re-birth’ theme and positive outlook for global demand,” according to Michaeli.

Itay expected Q1 EPS of $0.97, $0.01 above consensus, and felt that, “combined with favorable industry dynamics (SAAR recovery, renewed price discipline, transition to global platforms) and GM's #1 presence in emerging markets, GM may be the most compelling auto turnaround stories in our universe.”

Since it last earnings report, shares of GM had gained nearly 10 percent.

Ahead of its earnings release, General Motors traded at $37.39 in the after-hours session, up 0.62 percent.