General Motors has raised its financial projections for 2024 after exceeding Wall Street’s expectations in the second quarter. The Detroit-based automaker increased its anticipated adjusted earnings 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 reducing its net income guidance for shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, representing more than a 7% increase from last year and surpassing the $45 billion anticipated by analysts, according to estimates from FactSet. The company also posted earnings per share of $3.06, which exceeded the $2.71 per share forecast and was 60% higher than the same period in 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following these results, GM’s stock rose nearly 5% in pre-market trading, contributing to a year-to-date increase of over 37%. The company also announced a third-quarter cash dividend, further enhancing investor confidence.
In a shareholder letter, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs. She indicated that the company is launching eight new or redesigned models across various segments in North America. Additionally, Barra noted the ramp-up in production of the electric Chevrolet Equinox, emphasizing GM’s commitment to disciplined volume growth despite earlier predictions of producing 1 million electric vehicles in North America by the end of 2025 being unrealistic due to a market slowdown.
Barra also revealed that Cruise, GM’s autonomous vehicle division, will discontinue its Origin vehicle model, shifting focus to the next-generation Chevrolet Bolt for testing in Texas and Arizona. This shift follows a $600 million charge related to stopping production of the Origin, which had raised regulatory concerns due to its unconventional design.
“Our vision to transform mobility using autonomous technology remains intact, and every mile traveled and every simulation takes us closer because Cruise is an AI-first company,” Barra stated.
Moreover, GM is restructuring its joint venture with SAIC Motor in China, where the company reported a $104 million loss in the second quarter. In June, SAIC-GM lowered production by 70%, delivering 26,000 vehicles, a 50% decline from the previous year.