General Motors has raised several financial projections for 2024 following a significantly successful second quarter that exceeded Wall Street predictions. The automaker has adjusted its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, an increase from the previous forecast of $12.5 billion to $14.5 billion. Alongside this, forecasts for operating cash flow and earnings per share have also been increased, while expectations for net income attributable to shareholders have been slightly reduced, now projected between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, representing a rise of over 7% year-over-year, and surpassing the Wall Street expectation of $45 billion, according to FactSet estimates. Earnings per share reached $3.06, exceeding the analyst forecast of $2.71 per share and up 60% from a year earlier. Net income climbed 14%, rising from $2.5 billion to $2.9 billion.
Following this announcement, GM’s stock price surged nearly 5% in pre-market trading, with the stock having increased more than 37% this year. The company also declared a third-quarter cash dividend, adding 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, mentioning the ongoing launch of eight new or redesigned models in North America. She confirmed that GM is ramping up production of the electric Chevrolet Equinox, emphasizing a commitment to disciplined volume growth alongside excitement for their electric vehicles, despite recent statements indicating that the company may not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to market slowdowns.
Additionally, Barra announced changes regarding GM’s self-driving unit, Cruise, which will cease production of its Origin vehicle following a prior operational rollback triggered by an incident last October. Instead, Cruise will focus on testing its next-generation Chevrolet Bolt in Texas and Arizona. This pivot is expected to address regulatory concerns over the Origin’s unique design, like the absence of a steering wheel, while also reducing unit costs and optimizing resources.
Barra reiterated the company’s commitment to transforming mobility through autonomous technology, stating that every mile and simulation moves them closer to realizing that vision.
On the international front, GM is restructuring its joint venture in China with SAIC Motor, as the partnership continues to face financial challenges, evidenced by a $104 million loss in the second quarter. In June, the production output of SAIC-GM was slashed by 70%, resulting in a delivery of only 26,000 vehicles—50% less than the same period the previous year.