General Motors has updated its financial forecasts for 2024 after exceeding Wall Street’s expectations for its second quarter results. The Detroit-based automaker now anticipates its adjusted earnings for the year to be between $13 billion and $15 billion, an increase from the previous range of $12.5 billion to $14.5 billion. Additionally, GM has lifted its targets for operating cash flow and earnings per share, while slightly revising down the projections for net income attributable to shareholders to a range of $10 billion to $11.4 billion.
For the second quarter, GM reported revenues of $47.9 billion, reflecting a more than 7% increase compared to last year and surpassing the anticipated $45 billion as per FactSet estimates. Earnings per share stood at $3.06, exceeding the expected $2.71 and representing a 60% increase from 2023. Net income rose 14% to $2.9 billion, up from $2.5 billion in the same quarter last year.
Following the announcement, GM’s stock surged nearly 5% in pre-market trading, having risen over 37% this year. The automaker declared a cash dividend for the third quarter, which contributed to the stock’s upward momentum.
In her letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs, noting the upcoming launch of eight new or redesigned models across various size categories in North America. Barra also mentioned the scaling up of the electric Chevrolet Equinox’s production, emphasizing the company’s commitment to disciplined growth in electric vehicles (EVs) despite a revised outlook for achieving its target of producing 1 million EVs in North America by the end of 2025 due to a market slowdown. GM plans to adapt to demand, and its EV sales did see growth in the last quarter.
Additionally, Barra announced changes regarding GM’s self-driving unit, Cruise. After having to scale back operations due to a previous incident, Cruise will no longer pursue the Origin vehicle and will instead utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. This pivot aims to address regulatory concerns regarding the Origin’s design while also reducing unit costs and optimizing resource allocation.
Barra reiterated GM’s commitment to advancing autonomous technology, stating that each mile traveled and simulation brings the company closer to realizing its mobility vision. Furthermore, GM is undergoing a restructuring of its joint venture with SAIC Motor in China, facing losses with a reported $104 million loss in the second quarter. Production was significantly cut in June, with only 26,000 vehicles delivered, marking a 50% decline compared to the previous year.