Why Is General Motors (GM) Up 6.9% Since Last Earnings Report?

Core Viewpoint - General Motors reported a mixed performance in its recent earnings, with adjusted earnings per share surpassing estimates but showing a decline compared to the previous year [2][3]. Financial Performance - Adjusted earnings for Q2 2025 were $2.53 per share, exceeding the Zacks Consensus Estimate of $2.39, but down from $3.06 in the same quarter last year [2]. - Total revenues reached $47.12 billion, beating the Zacks Consensus Estimate of $46.25 billion but lower than $47.97 billion from the prior year [2]. - Adjusted EBIT was $3.03 billion, a decrease from $4.43 billion in the prior-year quarter [3]. Segmental Performance - GMNA generated net revenues of $39.49 billion, down from $40.72 billion year-over-year, but above the projected $37.86 billion due to higher deliveries [4]. - GMI reported net revenues of $3.33 billion, up from $3.29 billion year-over-year, exceeding expectations [5]. - GM Financial's net revenues increased to $4.26 billion from $3.92 billion in the previous year, surpassing predictions [6]. Financial Position - As of June 30, 2025, General Motors had cash and cash equivalents of $22.38 billion and long-term automotive debt of $15.48 billion [7]. - The company generated net automotive cash from operating activities of $4.65 billion during the quarter [7]. - Adjusted automotive free cash flow was $2.83 billion, down from $5.3 billion in the prior year [7]. Market Sentiment - There has been a downward trend in estimates for General Motors over the past month [8]. - The company holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [11]. VGM Scores - General Motors has an average Growth Score of C, a Momentum Score of F, and a Value Score of A, placing it in the top 20% for value investors [9][10].