General Motors has adjusted its financial targets for 2024, raising expectations following impressive second-quarter results that exceeded Wall Street predictions. The Detroit-based automaker has increased its forecast for adjusted earnings to an estimated range of $13 billion to $15 billion, up from a previous estimate of $12.5 billion to $14.5 billion. Additionally, GM raised its targets for operating cash flow and earnings per share. However, the company slightly reduced its expectations for net income attributable to shareholders, now estimated between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking over a 7% increase from the previous year and surpassing Wall Street’s expectation of $45 billion, according to FactSet. Earnings per share climbed to $3.06, exceeding analysts’ expectations of $2.71 per share and seeing a significant rise of 60% compared to 2023. Net income for the quarter rose 14%, reaching $2.9 billion compared to $2.5 billion.
In response to these results, GM’s stock rose nearly 5% in pre-market trading Tuesday, reflecting a more than 37% increase in value throughout the year. Following the close of trading on Monday, GM announced a cash dividend for the third quarter, further boosting investor confidence.
In a letter addressed to shareholders, CEO Mary Barra highlighted the company’s success with gas-powered trucks and SUVs, announcing plans to launch eight new or redesigned models across compact, mid-size, and full-size categories in North America. She emphasized GM’s commitment to disciplined volume growth as the company increases production of the electric Chevrolet Equinox, while also recognizing a slowdown in the market that will prevent GM from meeting its goal of producing 1 million electric vehicles in North America by the end of 2025.
Barra revealed that GM’s self-driving subsidiary, Cruise, would be discontinuing its Origin vehicle after an operational setback last October, instead opting to focus on the next-generation Chevrolet Bolt for testing in Texas and Arizona. The company incurred a $600 million charge related to the halted production of the Origin in Detroit.
She noted that utilizing the Bolt would mitigate regulatory concerns associated with the Origin’s design, as well as reduce costs and help GM optimize its resources. Barra reiterated that GM’s vision of transforming mobility through autonomous technology remains steadfast and that each development brings Cruise closer to its goals.
GM is also working to restructure its joint venture in China with SAIC Motor due to ongoing financial losses, reporting a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70%, delivering 26,000 vehicles, which is 50% less than the same period a year prior, according to industry reports.