Citigroup analysts have high hopes for GM earnings, not so much for Ford

|By:, SA News Editor

Citigroup expects a big Q2 earnings beat from General Motors (GM -0.2%) but is somewhat less optimistic about Ford's (F +0.1%) results when the two automakers release their financial results on Thursday.

The firm lifts its Q2 EPS estimate for GM to $0.63 vs. $0.57 consensus, led by North America, where it forecasts $1.7B adjusted EBIT (~11% margin excluding recall costs) on higher production/truck mix, exceptional pricing (Q2 ATPs up more than $600 Q/Q) and arguably easier structural cost comparisons; unlike last quarter, 2014 guidance should suggest an accelerating H2 EBIT pace consistent with GM’s June update.

Cit's Q2 EPS for Ford is reduced to $0.36 mostly on taxes vs. $0.36 consensus, with pre-tax auto EBIT at $1.7B; although the firm isn't expecting an earnings beat, it believes the quarter/outlook could still result in upward 2014-15 Street revisions.