General Motors is raising its financial targets for 2024 after reporting strong second-quarter results that exceeded Wall Street estimates. The company has adjusted its expected adjusted earnings for the year to a range of $13 billion to $15 billion, an increase from a previous forecast of $12.5 billion to $14.5 billion. Additionally, GM has adjusted its targets for operating cash flow and earnings per share, although expectations for net income attributable to shareholders have been slightly lowered to between $10 billion and $11.4 billion.
In the second quarter, GM’s revenue reached $47.9 billion, marking an increase of more than 7% compared to the prior year and surpassing the $45 billion anticipated by analysts, according to FactSet. Earnings per share came in at $3.06, exceeding the $2.71 per share forecast and representing a 60% increase from 2023. The company’s net income rose by 14% to $2.9 billion, up from $2.5 billion a year earlier.
Following the report, GM’s stock surged nearly 5% in pre-market trading, with shares having risen over 37% this year. The company also declared a third-quarter cash dividend after trading ended on Monday, contributing to the stock’s positive momentum.
In a letter to shareholders, GM CEO Mary Barra highlighted the company’s success in the gas-powered vehicle market and mentioned plans to launch eight new or redesigned vehicle models in North America. Barra also discussed the scaling up of production for the electric Chevrolet Equinox, emphasizing GM’s commitment to disciplined growth in electric vehicle production despite earlier comments about not reaching its target of producing 1 million electric vehicles in North America by the end of 2025 due to market conditions.
Barra announced that Cruise, GM’s self-driving division, would discontinue its Origin vehicle in favor of utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona, after facing regulatory issues related to the Origin’s design. This decision comes after GM recorded a $600 million charge linked to the halt of Origin production.
In a statement, Barra reaffirmed the company’s vision to transform mobility through autonomous technology, asserting that each step taken brings them closer to that goal. GM is also working on restructuring its joint venture with SAIC Motor in China, as the company faced losses, registering a $104 million loss for the second quarter. In June, SAIC-GM drastically reduced production by 70%, delivering 26,000 vehicles, which is 50% less than the same period last year, according to reports.