General Motors is revising its financial outlook for 2024 after exceeding Wall Street expectations in the second quarter of this year.
The automaker has increased its projected adjusted earnings for the year to a range between $13 billion and $15 billion, up from its previous forecast of $12.5 billion to $14.5 billion. Additionally, GM 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 over a 7% increase from the previous year and surpassing Wall Street’s anticipated $45 billion, according to FactSet estimates. The company’s earnings per share reached $3.06, exceeding the expected $2.71 per share and reflecting a 60% increase compared to 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following the news, GM’s stock jumped nearly 5% in pre-market trading on Tuesday, with its value climbing more than 37% this year. After trading ended on Monday, GM announced a cash dividend for the third quarter, contributing to the stock’s surge.
In a communication to shareholders, CEO Mary Barra highlighted the strong performance of the company’s gas-powered trucks and SUVs. She detailed that GM is working on launching eight new or redesigned models across various size categories in North America. Barra also discussed plans to ramp up production of the electric Chevrolet Equinox, emphasizing the company’s commitment to “disciplined volume growth” despite earlier projections of producing 1 million electric vehicles in North America by the end of 2025 being unattainable due to market slowdowns.
Additionally, Barra announced that GM’s self-driving division, Cruise, will discontinue its Origin vehicle following an operational rollback due to an incident last October. Instead, Cruise will concentrate on using the next-generation Chevrolet Bolt for testing in Texas and Arizona. This shift will reduce production-related costs and address regulatory concerns linked to the Origin’s unconventional design, such as its absence of a steering wheel.
“Our vision to transform mobility using autonomous technology remains intact,” Barra stated. “Every mile traveled, and every simulation, brings us closer because Cruise is an AI-first company.”
On another front, GM is seeking to restructure its joint venture with SAIC Motor in China, as the company continues to incur losses, reporting a $104 million loss for the second quarter. Following a significant production cut of 70% in June, SAIC-GM delivered 26,000 vehicles, which is a 50% decline from the previous year, according to Automotive News.