11:57 AM EDT, 10/14/2025 (MT Newswires) -- General Motors ( GM ) and Ford (F) saw improving investor expectations during Q3 as early concerns that automakers would pass new tariffs on to consumers faded and the broader auto sector performed better than expected, BofA Securities said in a note Tuesday.

General Motors ( GM ) is scheduled to release its Q3 financial results on Oct. 21, and Ford on Oct. 23.

The analysts said that since Q2, consensus estimates have been revised upward. Ford's projected earnings before interest and taxes has risen by 7%, while General Motors ( GM ) has increased increased by 3%. These upward revisions supported both companies' stock performance during the quarter, with General Motors ( GM ) gaining 17% and Ford up 5%.

The analysts added that while they remain constructive on both Ford and General Motors ( GM ), there is more caution heading into Q4 compared to overall market expectations.

The analysts updated earnings per share estimate for General Motors ( GM ) to $2.34, down from a prior forecast of $2.46. Looking ahead to Q4, the bank's EPS estimate is $1.68, compared to the consensus estimate of $1.81. Key concerns include the impact of rising metal costs and potential new tariffs on medium- and heavy-duty vehicles.

For Ford, the analysts lowered their Q3 EPS estimate from $0.38 to $0.37, and for Q4, the EPS forecast was dropped from $0.30 to $0.21. The analysts added that the estimates were lowered due to expected disruptions in the production of Ford's high-margin F-Series trucks.

BofA trimmed its price target on General Motors ( GM ) from $62 to $61 while keeping its buy rating. Ford's price target was adjusted from $14 to $13.50 with a buy rating maintained.

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