Boston, MA 04/24/2014 (wallstreetpr) – General Motors Company (NYSE:GM)’s profit is going to turn into a loss. The major impact is coming from the huge 7 million recalls from the company. The vehicles with fault have resulted in the death of at least 13 people. Further, the company has not performed well in the Europe, Australia, South America, Asia and Russia. It was again a quarter of losses in Europe. The company is set to announce its earnings on April 24, 2014. Analysts are not optimistic about the financial results. They have lowered their earnings estimates for the company.
Lower earning estimates
The analysts at Barclays Plc have lowered the earnings estimate. They were previously expecting a profit of 20 cents per share. But now they expect the company to post penny-per-share loss. This quarter is going to be the worst quarter in terms of financial results since 2009. In 2009, GM started back its operations as U.S. government-backed bankruptcy reorganization. General Motors Company (NYSE:GM) reported a huge profit of 67 cents per share last year.
It is not about the lower estimates by Barclays Plc. Many other analysts have lowered the earnings estimates for GM’s first quarter 2014. These all changes have happened in last one month. Now the average estimate stands at four cents a share.
The poor performance
It is a big drop as compared to the earnings figure of last year. The consensus estimate of four cents per share is much below the expectations. Last year the company posted a first quarter profit of $1.18 billion. This year there is no profit figure. In fact, the analysts are expecting the company to post a loss $1.3 billion. It includes the cost incurred in recalling 7 million vehicles. Also,General Motors Company (NYSE:GM) suffered $400 million pretax charge arising from the changes in Venezuela’s currency. Still, it is a wait and watch game till the time the company declares its quarterly results.
