General Motors has raised several financial projections for 2024 after exceeding Wall Street expectations in its second quarter results. The Detroit automaker has adjusted its anticipated adjusted earnings to a range of $13 billion to $15 billion, an increase from its previous estimate of $12.5 billion to $14.5 billion. Additionally, GM adjusted its targets for operating cash flow and earnings per share, while slightly lowering expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking more than a 7% increase from the previous year and surpassing the $45 billion forecast by analysts, according to FactSet estimates. The company’s earnings per share reached $3.06, beating expectations of $2.71 per share and showing a 60% improvement over 2023. Furthermore, net income rose 14% to $2.9 billion, up from $2.5 billion.
Following these announcements, GM’s stock rose nearly 5% in pre-market trading on Tuesday, contributing to a year-to-date increase of over 37%. After the market closed on Monday, GM also announced a cash dividend for the third quarter, providing an additional boost to its stock value.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs, noting that the company is launching eight new or redesigned models across various categories in North America. She emphasized GM’s commitment to disciplined growth in electric vehicle (EV) production, despite acknowledging that the company will not meet its goal of producing 1 million EVs in North America by the end of 2025 due to a slowdown in the market.
Barra also shared updates concerning Cruise, GM’s autonomous driving unit, which previously had to scale back its operations after an incident last October. The company will discontinue its Origin vehicle and instead use the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge taken by GM due to the suspension of Origin production in Detroit.
During a call with analysts, Barra mentioned that utilizing the Bolt would address regulatory concerns regarding the Origin’s distinct design, which lacks a steering wheel. This change is expected to reduce costs per unit and optimize resource allocation.
GM is also working to restructure its joint venture with SAIC Motor in China, as it continues to face financial challenges. In the second quarter, the company reported a loss of $104 million. Earlier in June, SAIC-GM reduced production by 70%, resulting in the delivery of 26,000 vehicles, a decline of 50% compared to the previous year, according to Automotive News.