General Motors has increased its financial outlook for 2024 following strong second-quarter results that exceeded Wall Street’s forecasts. The automaker revised its adjusted earnings expectations for the year to a range of $13 billion to $15 billion, up from the previous forecast of $12.5 billion to $14.5 billion. Additionally, GM raised its targets for operating cash flow and earnings per share, while slightly lowering expected net income attributable to shareholders to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, marking a more than 7% increase from the same period last year and surpassing Wall Street’s expectation of $45 billion. Earnings per share reached $3.06, which exceeded analysts’ projections of $2.71 per share and represented a 60% increase compared to 2023. The company’s net income also rose by 14%, amounting to $2.9 billion, up from $2.5 billion.
Following these announcements, GM’s stock jumped nearly 5% in pre-market trading and has surged more than 37% this year. The automaker also declared a cash dividend for the third quarter after the market closed on Monday, contributing to the stock’s upward momentum.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs, stating that the company is set to launch eight new or redesigned models in North America. Barra emphasized GM’s commitment to scaling production of the electric Chevrolet Equinox and noted their focus on disciplined growth in the electric vehicle (EV) sector, despite earlier comments that the company wouldn’t achieve its goal of producing 1 million EVs in North America by the end of 2025 due to market challenges.
In relation to its autonomous driving initiatives, Barra announced that Cruise, GM’s self-driving unit, will discontinue its plans for the Origin vehicle and instead will focus on the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge linked to the halted production of the Origin in Detroit. Barra explained that utilizing the Bolt would address regulatory concerns regarding the unique design of the Origin, which lacks a steering wheel, and will help reduce costs and optimize resources.
Furthermore, GM is restructuring its joint venture in China with SAIC Motor, as ongoing losses led to a reported $104 million loss in the second quarter. In June, SAIC-GM drastically cut production by 70%, resulting in the delivery of 26,000 vehicles, a 50% decrease from the previous year.