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General Motors (GM -2%) is trading lower after the automotive giant reported upside Q1 results this morning. GM posted upside for both EPS and revenue. However, the key takeaway is that GM said its FY25 guidance does not contemplate the potential impact of tariffs. GM does not appear to be formally suspending guidance or withdrawing guidance, but it does sound like it's under review.

• The other notable takeaway is that GM pushed back its Q1 earnings call from this morning to Thursday morning. The company wants to get further clarity on the evolving landscape regarding tariffs on auto components before holding a call. President Trump is holding a rally today in Michigan to mark the first 100 days of his second term. It is possible that he may announce some tariff relief. This may be why GM is holding off on the call.
• While this makes sense, we suspect that it is making investors a bit nervous and perhaps adding to the weakness in the shares today. Briefing.com will post details from that call on Thursday morning.
• Let's dig into the Q1 results a bit. Unfortunately, we did not get the same level of detail we normally get from GM as the press release is condensed and the call usually provides good color. With that said, revenue rose 2.3% yr/yr to $44.02 bln, which was a bit better than expected. However, the 2.3% growth was GM's smallest yr/yr growth since 4Q23. In fairness, GM was lapping a strong 1Q24 which was right after the UAW strike ended.
• Adjusted EBIT is the most closely followed metric. It fell 9.8% yr/yr but rose 39% sequentially to $3.49 bln. Again, the year ago result was quite strong with healthy margins. Adjusted EBIT margin fell to 7.9% from 9.0% a year ago. In January, GM had guided to FY25 adjusted EBIT of $13.7-15.7 bln and adjusted EPS of $11.00-12.00. However, it sounds like those numbers should no longer be relied upon, at least for now. We hope to get clarification on the call on Thursday.

Unfortunately, we did not get a lot of color from GM today on its Q1 report and, more importantly, its outlook for Q2 and FY25. We will have to wait for Thursday's call to get a fuller picture. However, we believe it's likely that investors are nervous that GM will formally suspend guidance or possibly lower guidance in the near future. The stock has been trending lower in recent months as investors await more certainty on tariffs.