General Motors has increased several financial targets for 2024 following a strong second-quarter performance that exceeded Wall Street expectations. The automaker has revised its adjusted earnings forecast for the year, now projecting between $13 billion and $15 billion, an increase from the previous estimate of $12.5 billion to $14.5 billion. Additionally, GM has raised its targets for operating cash flow and earnings per share, though it 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, reflecting a more than 7% rise from the same period last year and surpassing the anticipated $45 billion, as per FactSet estimates. Earnings per share rose to $3.06, well above the $2.71 expected by analysts and marking a 60% increase compared to 2023. The company’s net income increased by 14%, reaching $2.9 billion, up from $2.5 billion.
Following these results, GM stock rose nearly 5% in pre-market trading on Tuesday, with the shares having gained over 37% this year. The company also announced a cash dividend for the third quarter, contributing to the stock’s positive momentum.
In her letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs and noted that the company is launching eight new or redesigned models in North America. Barra emphasized the scaling production of the electric Chevrolet Equinox and expressed a commitment to disciplined volume growth despite earlier comments 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. However, the company did achieve growth in electric vehicle sales last quarter.
Barra also mentioned that Cruise, GM’s self-driving unit, would discontinue its Origin vehicle in favor of using the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision came after Cruise had to reduce its operations following an incident last October. GM took a $600 million charge associated with halting Origin production in Detroit.
During a conference call with analysts, Barra reassured that the vision for transforming mobility through autonomous technology remains intact, stating that every mile and simulation gets them closer to their goals. Additionally, GM is looking to restructure its joint venture in China with SAIC Motor amid ongoing losses, having incurred a $104 million loss in the second quarter. In June, SAIC-GM significantly reduced production, delivering 26,000 vehicles, which is 50% less than the previous year, according to Automotive News.