00:00 Jared

General Motors is gearing up to report its fourth quarter results. The automaker recently warning it faces a $6 billion EV related charge. Here with a closer look is Yahoo Finance’s Pras Subramanian. Pras.

00:15 Pras Subramanian

Hey, Jared, how you doing man? So yeah, GM investors, you’re looking for it to continue a strong run of the quarterly performance recently, uh with the fourth quarter results on deck for Tuesday morning. But, you know, challenges do remain for the automaker with with this tariffs and the EV business continue to be a drag on performance. So for the quarter, uh analysts looking for GM to post Q4 revenue of of 45.4 billion, down 5% compared to a year ago with Q4 adjusted EPS of $2.28 on adjusted EBIT of 2.77 billion. Now, GM updated its full-year guidance last quarter. The main metric here being adjusted EBIT in the range of 12 to 13 billion. Now, the reason why it it updated the guidance in a positive manner is because it said the tariff exposure wouldn’t be as high as expected due to the MSRP offsets that the White House announced earlier in the year. Nonetheless, the tariff hit will be in the 3 and a half to 4 and a half billion dollars range. So that’s still uh not nothing there. And finally you mentioned that EV business here, right, $6 billion, that won’t um affect its adjusted EBIT numbers this year, but it’s both a mix of cash and non-cash impairments. Add in the 1.6 billion EV hit GM reported earlier last year and its total loss from the EV business unit are going to be $6.6 billion with the possibility of more to come in the future.

01:23 Jared

All right, we look forward to those earnings and your report there on. Thank you, Pras.