General Motors has announced an upward adjustment of its financial targets for 2024 following a strong second-quarter performance that exceeded Wall Street predictions.
The automaker raised its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, up from its previous estimate of $12.5 billion to $14.5 billion. Additionally, GM increased its projections for operating cash flow and earnings per share, although it slightly lowered expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In its second-quarter report, GM recorded revenues of $47.9 billion, marking a more than 7% increase from the previous year and surpassing Wall Street’s $45 billion estimate. Earnings per share amounted to $3.06, exceeding analysts’ expectations of $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 results, GM’s stock surged nearly 5% in pre-market trading on Tuesday, having already increased over 37% this year. Additionally, GM declared a cash dividend for the third quarter, which further bolstered its stock.
In a letter to shareholders, CEO Mary Barra emphasized the robust performance of the company’s gas-powered trucks and SUVs and announced plans to launch eight new or redesigned models in North America. Barra highlighted GM’s commitment to scaling production of the electric Chevrolet Equinox and expressed enthusiasm over the future of electric vehicles, while also acknowledging a slowdown in the market that may impact the goal of producing 1 million electric vehicles in North America by the end of 2025.
Barra also revealed that Cruise, GM’s self-driving unit, is discontinuing its Origin vehicle to focus on the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge related to the halt in Origin production.
During a call with analysts, Barra assured that using the Bolt would address regulatory concerns regarding the Origin’s unique design and help optimize production costs.
Furthermore, 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, production at SAIC-GM was cut by 70%, leading to a delivery of 26,000 vehicles, which is 50% lower than the previous year.