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General Motors (NYSE:GM) Surpasses Earnings Expectations with Strong Quarterly Performance
Financial Modeling Prepยท 2025-10-21 17:00
Core Insights - General Motors (GM) reported earnings per share (EPS) of $2.80, exceeding the estimated $2.29, with revenue of approximately $48.6 billion, surpassing the expected $45 billion [1][2][6] - The current EPS reflects a slight decrease from $2.96 in the same quarter last year, but still outperformed the Zacks Consensus Estimate of $2.28 [2] - Strategic decisions regarding tariff costs and higher vehicle prices have positively influenced GM's financial outlook [2][3] Financial Metrics - GM's price-to-earnings (P/E) ratio is approximately 11.70, indicating market valuation of its earnings [4] - The price-to-sales ratio stands at about 0.29, suggesting a relatively low market valuation compared to its revenue [4] - The enterprise value to sales ratio is around 0.90, reflecting GM's total valuation in relation to its sales [4] Financial Health - The enterprise value to operating cash flow ratio is approximately 7.03, showing how the market values its cash flow from operations [5] - GM's earnings yield is about 8.55%, providing insight into the return on investment for shareholders [5] - The debt-to-equity ratio is approximately 2.05, indicating financial leverage, while a current ratio of about 1.22 suggests reasonable liquidity to cover short-term liabilities [5]