General Motors has revised its financial projections for 2024 following a significant second-quarter performance that exceeded Wall Street’s expectations. The Detroit-based automaker has increased its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, up from its prior estimate of $12.5 billion to $14.5 billion. Additionally, GM has raised its targets for operating cash flow and earnings per share, while slightly lowering its expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenues of $47.9 billion, marking an increase of over 7% from the previous year and surpassing the $45 billion forecasted by analysts, according to FactSet estimates. The company’s earnings per share reached $3.06, exceeding the anticipated $2.71 and showing a 60% increase compared to 2023. Net income saw a growth of 14%, totaling $2.9 billion compared to $2.5 billion in the prior year.
Following this announcement, GM’s stock rose nearly 5% in pre-market trading, with a gain of more than 37% so far this year. The company also declared a third-quarter cash dividend after trading closed on Monday, contributing to the stock’s upward momentum.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs, along with plans to introduce eight new or redesigned compact, mid-size, and full-size models in North America. Barra emphasized that GM is ramping up production of the electric Chevrolet Equinox, while also expressing commitment to “disciplined volume growth” despite earlier admitting 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, will abandon its Origin vehicle program and instead utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM has incurred a $600 million charge related to the halted production of the Origin in Detroit. During a call with analysts, Barra stated that adopting the Bolt would address regulatory concerns regarding the Origin’s unconventional design and reduce costs.
Barra also reaffirmed GM’s commitment to transforming mobility through autonomous technology, stating that each mile and simulation brings Cruise closer to its vision as an AI-first company.
Lastly, GM is working on restructuring its joint venture in China with SAIC Motor as it continues to face losses, reporting a $104 million loss for the second quarter. In June, SAIC-GM significantly reduced production by 70% and delivered 26,000 vehicles, representing a 50% decrease compared to the previous year.