General Motors has raised its financial forecasts for 2024 after exceeding Wall Street’s expectations in its second quarter results. The Detroit-based automaker now anticipates adjusted earnings between $13 billion and $15 billion, up from the previous range of $12.5 billion to $14.5 billion. It also increased its targets for operating cash flow and earnings per share, while slightly lowering expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, which is over a 7% increase from the same period last year and surpasses Wall Street’s expectations of $45 billion. The company’s earnings per share hit $3.06, exceeding the $2.71 anticipated by analysts and representing a 60% increase compared to 2023. Net income rose by 14% to $2.9 billion, compared to $2.5 billion in the prior year.
In pre-market trading on Tuesday, GM’s stock surged nearly 5%, reflecting an overall increase of more than 37% this year. The company also announced a third-quarter cash dividend after trading closed on Monday, contributing to the stock’s rise.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs. She noted the company’s plan to launch eight new or redesigned models in North America while focusing on scaling production of the electric Chevrolet Equinox. Barra expressed enthusiasm for their electric vehicle (EV) developments but emphasized a commitment to disciplined 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 due to a market slowdown. Nonetheless, the company continues to adapt by “building to demand,” and saw an increase in EV sales last quarter.
Barra also announced a shift in focus for Cruise, GM’s self-driving unit, which will abandon its Origin vehicle following operational setbacks. Instead, Cruise will utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona, which is expected to reduce per-unit costs and meet regulatory concerns regarding the Origin’s unconventional design, notably its absence of a steering wheel.
GM is also restructuring its joint venture with SAIC Motor in China, where it faced losses, reporting a $104 million loss in the second quarter. In June, SAIC-GM scaled back production by 70%, resulting in the delivery of only 26,000 vehicles, a 50% decline year-over-year.