General Motors has revised its financial outlook for 2024 following a strong performance in the second quarter that exceeded Wall Street’s expectations. The automaker increased its projected adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. It also raised its targets for operating cash flow and earnings per share, although the forecast for net income attributable to shareholders was slightly lowered by less than 1%, now expected to be between $10 billion and $11.4 billion.
In the second quarter, GM reported revenues of $47.9 billion, marking over a 7% increase from the previous year and surpassing the anticipated $45 billion. Earnings per share reached $3.06, exceeding the analysts’ expectation of $2.71 per share and representing a 60% increase compared to 2023. Net income rose by 14% to $2.9 billion, compared to $2.5 billion in the same period last year.
Following these announcements, GM’s stock surged nearly 5% in pre-market trading and has seen a 37% increase in value this year. Additionally, GM declared a third-quarter cash dividend, further boosting stock performance.
In communication to shareholders, CEO Mary Barra highlighted the success of the company’s gasoline-powered trucks and SUVs, mentioning plans to launch eight new or redesigned models across various sizes in North America. She also indicated that GM is ramping up production of the electric Chevrolet Equinox, emphasizing their commitment to measured growth in electric vehicle output despite earlier projections of 1 million electric vehicles by the end of 2025 not being met due to a market slowdown. However, EV sales did show growth in the last quarter.
Furthermore, Barra announced that GM’s self-driving division, Cruise, will discontinue its Origin vehicle, instead opting to use the next-generation Chevrolet Bolt for upcoming tests in Texas and Arizona. The decision to move away from the uniquely designed Origin, which lacks a steering wheel, is intended to address regulatory concerns and reduce per-unit costs, maximizing GM’s resources.
Lastly, GM is working to restructure its joint venture in China with SAIC Motor amidst ongoing losses, having reported a $104 million loss in the second quarter. Production cutbacks, which saw SAIC-GM’s output shrink by 70%, led to the delivery of only 26,000 vehicles—50% fewer than the previous year.