General Motors has increased several financial projections for 2024 after outperforming Wall Street’s expectations in its second quarter results. The Detroit-based automaker has raised its estimated adjusted earnings for the year to a range of $13 billion to $15 billion, up from a previous forecast of $12.5 billion to $14.5 billion. It also elevated its targets for operating cash flow and earnings per share, while slightly decreasing the net income forecast for shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenues of $47.9 billion, reflecting a more than 7% increase compared to the same period last year, and surpassing the $45 billion anticipated by analysts, according to FactSet. Earnings per share reached $3.06, exceeding the expected $2.71 per share and marking a 60% increase from 2023. 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. The stock has seen a more than 37% increase this year. On Monday, GM declared a third-quarter cash dividend, which contributed to the stock’s growth.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs, mentioning the launch of eight new or redesigned models in North America. She also stated that the company is ramping up production of the electric Chevrolet Equinox, emphasizing a commitment to disciplined growth in volume despite earlier remarks that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown.
Additionally, Barra announced that Cruise, GM’s self-driving unit, would discontinue its Origin vehicle and instead focus on the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision comes after a $600 million charge related to the suspension of Origin production.
During a call with analysts, Barra noted that utilizing the Bolt could address regulatory concerns about the design of the Origin, which lacks a steering wheel. This shift is expected to lower production costs and optimize GM’s resources.
Barra reaffirmed GM’s commitment to revolutionizing mobility through autonomous technology, stating that the company’s progress continues with every mile traveled and simulation conducted. Furthermore, GM is working to restructure its joint venture with SAIC Motor in China as it faces ongoing losses; the company incurred a $104 million loss in the second quarter, with SAIC-GM cutting production by 70% and delivering 26,000 vehicles, which is 50% fewer than the previous year.