GM and Ford expected to report positive third-quarter earnings image

This is financial week for the largest and second-biggest US automakers, with General Motors due Thursday and Ford the next day. FCA’s Chrysler is scheduled later on, for November 5.

Industry observers and analysts are expecting the two automakers to post strong earnings results for the quarter that just ended, though some precautions are also in order. General Motors should be up marginally from the result it had for the July-September period of 2013, in part because of higher quarterly sales – 2.45 million units delivered around the globe, the best third quarter for the carmaker since 1980. That could lift total revenue way up from the $38.1 billion registered in 2013 for the same timeframe. On the other hand, according to an average of analyst predictions compiled by FactSet, GM is only expected to report earnings of 97 cents per share, barely up from last year’s 96 cents (before special charges).

When it comes to Ford, according to a Morgan Stanley report led by analyst Adam Jonas, the automaker’s investor expectations for the quarter and near future “have been largely been reset after its recent profit warning.” Last month Ford was transparent enough to decrease it profit guidance – with the record number of vehicle launches impacting North America, the losses surging in Europe to $1.2 billion and a decrease in revenue also expected from South America. Still, analysts expect a strong profit averaging 20 cents per share and total revenue of $35.2 billion.