General Motors has increased several financial forecasts for 2024 after exceeding Wall Street predictions in its second-quarter results.
The Detroit-based automaker has raised its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, an increase from the previous estimate of $12.5 billion to $14.5 billion. Additionally, GM has adjusted 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, a decrease of less than 1%.
For the second quarter, GM reported revenue of $47.9 billion, marking a more than 7% increase from the previous year and surpassing the expected $45 billion from analysts at FactSet. The company’s earnings per share were reported at $3.06, beating the anticipated $2.71, and representing a 60% increase compared to 2023. Net income rose by 14% to reach $2.9 billion, up from $2.5 billion.
Following the announcement, GM’s stock saw a nearly 5% rise in pre-market trading on Tuesday, building on a 37% increase so far this year. The company declared a third-quarter cash dividend after Monday’s close, further boosting investor confidence.
CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs in a letter to shareholders, noting the company plans to introduce eight new or redesigned models in North America. Barra also mentioned that production of the electric Chevrolet Equinox is ramping up, reaffirming GM’s commitment to disciplined growth despite earlier statements indicating the company would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to market slowdowns.
Barra also announced changes regarding Cruise, GM’s self-driving subsidiary, which will abandon its Origin vehicle model in favor of the next-generation Chevrolet Bolt for testing in Texas and Arizona. This pivot follows a halt in production of the Origin, resulting in a $600 million charge for GM. The CEO noted that utilizing the Bolt would address regulatory concerns about the Origin’s unconventional design and improve overall cost efficiency.
Finally, GM is restructuring its joint venture with SAIC Motor in China in light of ongoing losses, reporting a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70%, delivering only 26,000 vehicles, which is 50% less than the previous year, according to Automotive News.