General Motors has increased several financial projections for 2024 after exceeding Wall Street’s expectations in its second-quarter results.
The automaker has raised its anticipated adjusted earnings for the year to between $13 billion and $15 billion, from the previous range of $12.5 billion to $14.5 billion. GM has also increased its targets for operating cash flow and earnings per share, while slightly reducing its expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported a revenue of $47.9 billion, representing a more than 7% growth compared to the same period last year, surpassing Wall Street’s expectations of $45 billion, according to FactSet estimates. The company’s earnings per share were $3.06, exceeding the analyst forecast of $2.71, and reflecting a 60% increase compared to 2023. Additionally, net income rose by 14%, reaching $2.9 billion, up from $2.5 billion.
Following these announcements, GM’s stock price surged nearly 5% in pre-market trading, marking a more than 37% increase this year. The company also declared a third-quarter cash dividend, contributing to the stock’s positive momentum.
In her letter to shareholders, CEO Mary Barra highlighted the strong performance of its gas-powered trucks and SUVs, mentioning that GM is set to launch eight new or redesigned models across various size categories in North America. Barra emphasized GM’s commitment to disciplined volume growth while scaling up production of the electric Chevrolet Equinox, although she acknowledged a market slowdown that would impact the goal of producing 1 million electric vehicles in North America by the end of 2025.
In a shift related to its self-driving unit, Cruise, GM will discontinue the development of its Origin vehicle, which was previously put on hold due to operational issues. Cruise will instead utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona, allowing the company to address regulatory concerns regarding the Origin’s design. This strategy is expected to reduce costs and improve resource efficiency.
Barra reiterated GM’s commitment to transforming mobility through autonomous technology, stating that each simulation and mile traveled brings the company closer to its goals.
Furthermore, GM is working to restructure its joint venture in China with SAIC Motor, which continues to face losses, including a $104 million loss reported for the second quarter. In June, the production at SAIC-GM was cut by 70%, resulting in the delivery of 26,000 vehicles, which is 50% lower than the previous year.