General Motors has increased several financial targets for 2024 following a strong second-quarter performance that exceeded Wall Street expectations.
The Detroit-based automaker has adjusted its anticipated adjusted earnings for the year to between $13 billion and $15 billion, up from the previous forecast of $12.5 billion to $14.5 billion. It has also raised its targets for operating cash flow and earnings per share, although the projected net income for shareholders was slightly lowered by less than 1%, now estimated to be between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, marking an increase of over 7% from the previous year and surpassing Wall Street’s anticipated figure of $45 billion, as per FactSet estimates. The company’s earnings per share stood at $3.06, exceeding the expected $2.71 and representing a 60% increase from 2023. Additionally, net income rose by 14% to $2.9 billion, up from $2.5 billion.
The company’s stock surged nearly 5% in pre-market trading on Tuesday, and it has seen an increase of more than 37% this year. GM also announced a third-quarter cash dividend after trading closed on Monday, further boosting investor confidence.
In her letter to shareholders, CEO Mary Barra praised the success of GM’s gas-powered trucks and SUVs and highlighted the company’s plans to launch eight new or redesigned models across various sizes in North America. She mentioned that GM is ramping up production of the electric Chevrolet Equinox and emphasized the company’s commitment to disciplined growth despite its earlier report that GM will not meet its target of producing 1 million electric vehicles in North America by the end of 2025, attributing this delay to a market slowdown.
Additionally, Barra stated that GM would halt the production of its self-driving unit, Cruise’s Origin vehicle, which had previously faced operational limitations following an incident last October. Instead, Cruise will focus on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona, which will help address regulatory concerns regarding the Origin’s unique design and reduce costs.
Barra reaffirmed GM’s vision to advance mobility through autonomous technology, asserting that every mile traveled contributes to their progress as Cruise continues to operate as an AI-focused company.
GM is also working to restructure its joint venture in China with SAIC Motor, amid ongoing losses, having reported a $104 million loss for the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering only 26,000 vehicles — 50% fewer than the previous year, according to Automotive News.