General Motors is adjusting its financial forecasts for 2024 after exceeding Wall Street expectations in its recent quarterly results. The automaker now anticipates adjusted earnings between $13 billion and $15 billion, an increase from its previous estimate of $12.5 billion to $14.5 billion. Additionally, it has revised its targets for operating cash flow and earnings per share, although expectations for net income attributable to shareholders were slightly lowered to a range of $10 billion to $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking a more than 7% increase compared to the same period last year and surpassing Wall Street’s anticipated $45 billion. Earnings per share reached $3.06, exceeding the analysts’ forecast of $2.71 and representing a 60% increase from 2023. Net income rose 14% to $2.9 billion, up from $2.5 billion.
Following the news, GM’s stock surged nearly 5% in pre-market trading on Tuesday and has increased over 37% this year. The company also declared a third-quarter cash dividend, which contributed to the stock’s positive momentum.
In her letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs and announced plans to launch eight new or redesigned vehicle models across various sizes in North America. She also mentioned the ramp-up of production for the electric Chevrolet Equinox and expressed excitement about the company’s early success with electric vehicles, while emphasizing a commitment to disciplined growth.
Despite setbacks, such as not meeting the target of producing 1 million electric vehicles in North America by the end of 2025 due to market slowdowns, GM reported growth in EV sales over the last quarter.
Barra also stated that the company’s autonomous division, Cruise, is shifting focus from its Origin vehicle to the next-generation Chevrolet Bolt for its testing operations in Texas and Arizona, following a pause in the Origin’s production due to regulatory concerns. GM took a $600 million charge related to the discontinuation of the Origin.
She reassured investors that the company’s vision to leverage autonomous technology remains intact, emphasizing that every mile and simulation brings Cruise closer to its goals.
Additionally, GM is working to restructure its joint venture in China with SAIC Motor, as the partnership continues to incur losses, reporting a $104 million loss for the second quarter. Production was cut by 70% in June, leading to a delivery of 26,000 vehicles, which is 50% less than the previous year.