General Motors has announced an increase in its financial targets for 2024 following strong second-quarter results that exceeded Wall Street expectations. The company raised its projected adjusted earnings for the year to a range of $13 billion to $15 billion, up from $12.5 billion to $14.5 billion. Additionally, GM revised its operating cash flow and earnings per share targets, while slightly adjusting the net income expectation for shareholders down by less than 1%, now estimated between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, representing a more than 7% increase from the previous year and surpassing the Wall Street forecast of $45 billion. Earnings per share reached $3.06, exceeding analyst estimates of $2.71 and showing a 60% improvement compared to 2023. The company’s net income rose 14%, amounting to $2.9 billion, up from $2.5 billion.
Following the announcement, GM’s stock rose almost 5% in pre-market trading, and the stock has increased by more than 37% this year. On Monday, GM declared a cash dividend for the third quarter, which contributed to the stock’s positive momentum.
In a communication to shareholders, CEO Mary Barra highlighted the strong performance of the automaker’s gas-powered trucks and SUVs while detailing plans to launch eight new or redesigned vehicle models in North America. She also mentioned the ramp-up of production for the electric Chevrolet Equinox, emphasizing the company’s commitment to disciplined growth in electric vehicle volumes despite admitting that GM is unlikely to achieve its goal of producing 1 million electric vehicles in North America by the end of 2025, due to a market slowdown.
In a strategic shift, Barra disclosed that GM’s self-driving division, Cruise, would discontinue the Origin vehicle model, opting instead to use the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision followed a production halt of the Origin in Detroit, which cost GM around $600 million. Barra indicated that utilizing the Bolt would address regulatory concerns about the Origin’s design and improve cost efficiency.
Additionally, GM is restructuring its joint venture with SAIC Motor in China due to ongoing losses, reporting a second-quarter loss of $104 million. Production cuts by SAIC-GM in June resulted in a 70% reduction, delivering 26,000 vehicles, which is 50% less than the previous year.