General Motors is increasing several financial projections for 2024 following a strong second quarter that exceeded Wall Street forecasts. The automaker has raised its expected adjusted earnings for the year to between $13 billion and $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. Operating cash flow and earnings per share targets have also been elevated, while expectations for net income attributable to shareholders have been slightly reduced to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, showing a more than 7% increase compared to the same period last year, and surpassing Wall Street’s expectation of $45 billion. Earnings per share stood at $3.06, exceeding the analyst forecast of $2.71, and marking a 60% increase from 2023. Net income rose 14% to $2.9 billion, compared to $2.5 billion a year ago.
The company’s stock rose nearly 5% in pre-market trading Tuesday and has increased over 37% this year. Additionally, GM announced a third-quarter cash dividend following the close of trading on Monday, which contributed to the stock’s rise.
CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs in a letter to shareholders, mentioning the launch of eight new or redesigned vehicles across different sizes in North America. She also pointed out that production of the electric Chevrolet Equinox is ramping up, reinforcing the company’s commitment to disciplined volume growth.
Earlier this month, Barra acknowledged that GM would not meet its objective of producing 1 million electric vehicles in North America by the end of 2025 due to a slowdown in the market. The company plans to adapt its production strategy to align with demand, although its electric vehicle sales did see an uptick last quarter.
In a notable shift, Barra announced that Cruise, GM’s self-driving unit, will discontinue its Origin vehicle model after a halt in operations last October. Cruise will focus on utilizing the next-generation Chevrolet Bolt for its vehicle testing in Texas and Arizona. GM has absorbed a $600 million expense connected to stopping Origin production in Detroit.
During an analyst call, Barra expressed confidence that using the Bolt would address regulators’ concerns regarding the Origin’s distinctive design, which lacked a steering wheel. This strategic change is expected to reduce costs per unit and enhance resource efficiency.
Additionally, GM is restructuring its joint venture with SAIC Motor in China due to ongoing financial losses, reporting a $104 million loss in the second quarter. In June, the SAIC-GM partnership reduced production by 70%, delivering only 26,000 vehicles—50% less than the previous year.