General Motors has revised its financial projections for 2024 after exceeding Wall Street’s expectations for the second quarter. The automaker has increased its forecasted adjusted earnings for the year to a range of $13 billion to $15 billion, up from a previous estimate of $12.5 billion to $14.5 billion. GM also updated its targets for operating cash flow and earnings per share, while slightly lowering expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking a more than 7% increase from the previous year and surpassing the Wall Street expectation of $45 billion, according to FactSet estimates. Earnings per share reached $3.06, exceeding the $2.71 estimated by analysts and representing a 60% rise from 2023. The company’s net income surged by 14% to $2.9 billion, up from $2.5 billion.
Following these results, GM’s stock rose nearly 5% in pre-market trading on Tuesday, and the stock has increased over 37% this year. Additionally, GM declared a third-quarter cash dividend after trading closed on Monday, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs and announced that the company is launching eight new or redesigned models in North America. Barra also mentioned the scaling production of the electric Chevrolet Equinox and emphasized GM’s commitment to disciplined growth in electric vehicle production, despite acknowledging a setback in reaching a goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown.
Additionally, Barra reported that Cruise, GM’s self-driving unit, would discontinue its Origin vehicle and instead focus on the next-generation Chevrolet Bolt for testing in Texas and Arizona. The company incurred a $600 million charge related to halting production of the Origin.
Barra reassured analysts that the company’s vision for transforming mobility through autonomous technology remains intact, stating that each test and simulation brings Cruise closer to advancing its AI-first approach.
Furthermore, GM is restructuring its joint venture with SAIC Motor in China, which has faced financial difficulties, reporting a $104 million loss in the second quarter. In June, SAIC-GM slashed production by 70%, delivering 26,000 vehicles, a 50% decline compared to the previous year, as reported by Automotive News.