General Motors has updated its financial forecasts for 2024 following a strong performance in the second quarter that exceeded Wall Street expectations. The company has raised its projected adjusted earnings for the year to between $13 billion and $15 billion, an increase from the previous forecast of $12.5 billion to $14.5 billion. In addition, GM has elevated its targets for operating cash flow and earnings per share, although it slightly reduced the expectations for net income attributable to shareholders by less than 1%, now estimated to range between $10 billion and $11.4 billion.
For the second quarter, GM reported revenues of $47.9 billion, marking a more than 7% increase compared to the same period last year and surpassing Wall Street’s anticipated $45 billion. Earnings per share reached $3.06, exceeding analysts’ expectations of $2.71 per share and representing a 60% increase from 2023. The net income for the quarter rose 14% to $2.9 billion, compared to $2.5 billion in the previous year.
Following these results, GM’s stock saw a nearly 5% rise in pre-market trading on Tuesday and has appreciated over 37% throughout the year. The company announced a cash dividend for the third quarter after the market closed on Monday, contributing to the stock’s positive momentum.
In a letter addressed to shareholders, GM CEO Mary Barra highlighted the success of the company’s gas-powered trucks and SUVs and discussed plans to launch eight new or redesigned models in North America. She also mentioned that GM is ramping up production of the electric Chevrolet Equinox while maintaining a focus on disciplined volume growth despite recent setbacks in electric vehicle production targets.
Earlier this month, Barra acknowledged that GM would not achieve its goal of producing 1 million electric vehicles in North America by the end of 2025, blaming a slowdown in the market. The company remains flexible and plans to “build to demand,” though EV sales did see an increase last quarter.
Additionally, Barra announced that Cruise, GM’s self-driving division, would abandon its plans for the Origin vehicle and instead utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge associated with suspending production of the Origin in Detroit. Barra indicated that using the Bolt would address regulatory concerns regarding the unique design of the Origin and would help reduce costs and optimize resources.
“Our vision to transform mobility using autonomous technology remains steadfast, and with each mile traveled and each simulation conducted, we are making progress because Cruise is an AI-first company,” Barra stated.
GM is also working on restructuring its joint venture with SAIC Motor in China, which has been experiencing losses, including a $104 million loss reported for the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering only 26,000 vehicles, which is 50% lower than the previous year.