General Motors has revised its financial forecasts for 2024 following a strong performance in the second quarter that exceeded Wall Street’s predictions. The Detroit-based automaker has increased its projected adjusted earnings for the year to between $13 billion and $15 billion, up from a previous range of $12.5 billion to $14.5 billion. Additionally, it has raised 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.
In terms of revenue, GM reported $47.9 billion for the second quarter, marking an increase of over 7% compared to the same period last year and outperforming the Wall Street estimate of $45 billion, according to FactSet. Earnings per share reached $3.06, surpassing analysts’ expectations of $2.71, and demonstrating a growth of 60% compared to 2023. The company’s net income rose by 14% to $2.9 billion, up from $2.5 billion in the previous year.
Following this announcement, GM’s stock rose nearly 5% in pre-market trading on Tuesday, bringing its total increase to more than 37% for the year. Additionally, GM declared a cash dividend for the third quarter, contributing to the stock’s positive momentum.
In her letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs while announcing plans to launch eight new or redesigned models in North America. She also mentioned the ramp-up of production for the electric Chevrolet Equinox, emphasizing the company’s commitment to cautious growth in electric vehicle (EV) production. However, Barra noted that GM is unlikely to meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to market conditions, stating that the company will adapt to demand.
Barra also revealed that Cruise, GM’s self-driving unit, will abandon its Origin vehicle in favor of the next-generation Chevrolet Bolt for testing purposes in Texas and Arizona. This change follows a previous scaling back of operations after an incident last October and will help address regulatory concerns about the Origin’s design. GM incurred a $600 million charge related to the discontinuation of the Origin’s production in Detroit.
During a call with analysts, Barra reiterated GM’s commitment to transforming mobility through autonomous technology, stating that advancements in AI will continue to drive progress. The automaker is also working on restructuring its joint venture with SAIC Motor in China, as it faces ongoing losses, including a $104 million loss reported for the second quarter. In June, SAIC-GM reduced its production by 70%, resulting in 26,000 vehicle deliveries—50% fewer than the previous year, as reported by Automotive News.