General Motors has announced an increase in its financial projections for 2024 after outperforming Wall Street estimates in the second quarter. The company has raised its anticipated adjusted earnings to between $13 billion and $15 billion, up from the previous range of $12.5 billion to $14.5 billion. Additionally, targets for operating cash flow and earnings per share have also been adjusted upwards, although the expectations for net income attributable to shareholders have been slightly decreased to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenues of $47.9 billion, marking a year-over-year increase of more than 7% and surpassing Wall Street’s expectations of $45 billion. Earnings per share stood at $3.06, exceeding the anticipated $2.71 and representing a 60% increase compared to 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following these announcements, GM’s stock saw a nearly 5% increase in pre-market trading and has risen over 37% this year. The company also declared a third-quarter cash dividend after Monday’s trading, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the success of their gas-powered trucks and SUVs, mentioning the ongoing launch of eight new or redesigned models across various categories in North America. Barra indicated that production of the electric Chevrolet Equinox is ramping up, while reiterating GM’s commitment to “disciplined volume growth” despite a previous acknowledgment that the company will not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown.
Furthermore, Barra announced that Cruise, GM’s self-driving unit, would discontinue its plans for the Origin vehicle, shifting focus to the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision comes after the Origin’s production was halted following an incident last October, resulting in a $600 million charge for GM.
Barra explained that utilizing the Bolt would address regulatory concerns over the unconventional design of the Origin and reduce costs per unit, allowing GM to optimize resources. She emphasized that GM’s vision for transforming mobility through autonomous technology remains firm, with continuous advancements being made through simulations and testing.
Lastly, GM is working on restructuring its joint venture with SAIC Motor in China, which has been experiencing losses, including a reported $104 million loss in the second quarter. In June, SAIC-GM cut production by 70% and saw a 50% decline in vehicle deliveries compared to the previous year.