What to Look for When GM Reports Q2 Results

GM is scheduled to post its 2016 second quarter earnings before Thursday’s opening bell.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of General Motors (GM) - Get Report are higher by 0.39% to $30.99 in mid-afternoon trading Tuesday ahead of the company's 2016 second quarter results due out before Thursday's market open.

Earnings per share and revenue are expected to rise year-over-year.

Analysts are projecting that the Detroit-based automaker will report earnings of $1.50 per share on revenue of $38.6 billion.

During the same period last year, GM posted adjusted earnings of $1.29 per share on net revenue of $38.2 billion.

Goldman Sachs expects another strong quarter as the company continues to focus on U.S. retail sales, which bring higher prices, and as it reduces U.S. fleet sales, MarketWatch reports.

The firm also wrote in a recent note that results for its German subsidiary Opel "also seem poised to come in strong, with retail sales up 9.1% in the first two months of the quarter."

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.

The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity, attractive valuation levels and impressive record of earnings per share growth.

The team believes its strengths outweigh the fact that the company shows weak operating cash flow.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: GM

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