General Motors has increased several financial projections for 2024 after exceeding Wall Street’s expectations in its second quarter results. The company has raised its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous range of $12.5 billion to $14.5 billion. Additionally, GM has 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 achieved a revenue of $47.9 billion, representing an increase of more than 7% compared to the same period last year and surpassing Wall Street’s expectation of $45 billion. Earnings per share were reported at $3.06, exceeding analysts’ forecast of $2.71 and reflecting a 60% rise from 2023. Net income also saw growth of 14%, reaching $2.9 billion, up from $2.5 billion in the previous year.
Following this positive performance, GM’s stock rose nearly 5% in pre-market trading on Tuesday, with shares increasing over 37% throughout the year. After market close on Monday, GM announced a cash dividend for the third quarter, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the success of the company’s gas-powered trucks and SUVs, stating that GM is set to launch eight new or redesigned models in North America. She mentioned the scaling of production for the electric Chevrolet Equinox, emphasizing a careful approach to volume growth despite enthusiasm for electric vehicles.
Earlier this month, Barra acknowledged that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown. The automaker plans to remain adaptable and produce according to demand, although it did see growth in EV sales last quarter.
Additionally, Barra announced a shift for Cruise, GM’s self-driving division, which has decided to discontinue the Origin vehicle. Instead, Cruise will focus on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision comes after GM incurred a $600 million charge linked to the halt of Origin production in Detroit. During a conference call, Barra explained that using the Bolt would address regulatory concerns associated with the unique design of the Origin, such as its lack of a steering wheel. This change is expected to reduce per-unit costs and help optimize resources.
Barra reaffirmed GM’s commitment to transforming mobility through autonomous technology, emphasizing that every mile traveled and simulation brings Cruise closer to achieving its goals. Furthermore, GM is working on restructuring its joint venture in China with SAIC Motor, which has been experiencing losses; the company reported a $104 million loss for the second quarter, with SAIC-GM cutting production by 70% and delivering 26,000 vehicles, a 50% drop compared to the previous year.