General Motors has elevated its financial projections for 2024 after exceeding Wall Street’s expectations in its second-quarter results. The Detroit automaker has increased its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, up from an earlier forecast of $12.5 billion to $14.5 billion. Additionally, GM has raised its targets for operating cash flow and earnings per share, although it slightly reduced its outlook for net income attributable to shareholders to between $10 billion and $11.4 billion, marking a decrease of less than 1%.
In the second quarter, GM reported revenue of $47.9 billion, reflecting a more than 7% increase compared to the same period last year, surpassing the expected $45 billion according to FactSet estimates. The company’s earnings per share stood at $3.06, exceeding analysts’ expectations of $2.71 and representing a 60% increase from 2023. Net income also experienced a 14% rise to reach $2.9 billion, compared to $2.5 billion in the prior year.
Following this announcement, GM’s stock rose nearly 5% in pre-market trading on Tuesday, highlighting a year-to-date increase of over 37%. After the market closed on Monday, GM declared a cash dividend for the third quarter, further bolstering its stock performance.
In a letter to shareholders, CEO Mary Barra emphasized the strong performance of the company’s gas-powered trucks and SUVs. She noted that GM is planning to launch eight new or redesigned models in North America, covering compact, mid-size, and full-size categories. Barra also mentioned the ramp-up of production for the electric Chevrolet Equinox, expressing confidence in the company’s electric vehicle (EV) efforts while advocating for disciplined volume growth.
Earlier in the month, Barra acknowledged that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025, attributing the setback to a slowdown in the market. Nevertheless, the company remains committed to adapting production based on demand, despite experiencing growth in EV sales last quarter.
Barra also revealed that Cruise, GM’s self-driving unit which had scaled back operations following an incident in October, would discontinue the Origin vehicle. Instead, Cruise will utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge due to the halt in Origin production in Detroit.
During a conference call with analysts, Barra stated that using the Bolt would address regulatory concerns regarding the unique design of the Origin, which lacked a steering wheel. This strategy is expected to lower per-unit costs and help GM allocate resources more effectively.
GM’s commitment to transforming mobility through autonomous technology remains steadfast. Barra underscored that “every mile traveled, and every simulation, brings us closer because Cruise is an AI-first company.”
Additionally, GM is working to reconfigure its joint venture in China with SAIC Motor due to ongoing losses, having reported a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70%, delivering only 26,000 vehicles, which is 50% less than the same time last year, as reported by Automotive News.