General Motors is adjusting its financial projections for 2024 following a strong performance in the second quarter that exceeded Wall Street’s predictions. The Detroit-based automaker has raised its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, an increase from a previous estimate of $12.5 billion to $14.5 billion. Additionally, GM has updated its targets for operating cash flow and earnings per share, although its expectations for net income attributable to shareholders have been slightly reduced to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenues of $47.9 billion, reflecting a more than 7% year-over-year increase and surpassing Wall Street’s expectations of $45 billion. Earnings per share were recorded at $3.06, exceeding the anticipated $2.71 and representing a 60% increase from the previous year. Net income also rose by 14%, reaching $2.9 billion, compared to $2.5 billion in the same period last year.
In pre-market trading, GM’s stock surged nearly 5%, adding to a year-to-date increase of over 37%. The company declared a cash dividend for the third quarter, further boosting investor confidence.
In her letter to shareholders, CEO Mary Barra highlighted the success of the company’s gas-powered trucks and SUVs, and announced plans to launch eight new or redesigned models across compact, mid-size, and full-size segments in North America. Barra emphasized GM’s commitment to disciplined growth in electric vehicle production, particularly with the upcoming electric Chevrolet Equinox, despite acknowledging earlier this month that the company’s target of producing 1 million EVs in North America by the end of 2025 will likely not be met due to a slowdown in the market.
Barra also revealed strategic changes for Cruise, GM’s self-driving division, which is moving away from its Origin vehicle to focus on next-generation Chevrolet Bolt models for testing in Texas and Arizona. GM had taken a $600 million charge related to the cessation of Origin production in Detroit. Barra assured analysts that utilizing the Bolt would help address regulatory concerns regarding the unique design of the Origin while also reducing costs and optimizing resources.
Finally, GM is reevaluating its joint venture with SAIC Motor in China as it faces ongoing losses, reporting a $104 million loss for the second quarter. In June, SAIC-GM scaled back production by 70%, delivering 26,000 vehicles, which is a 50% decrease compared to the previous year, according to reports.