General Motors has revised its financial targets for 2024 following stronger-than-anticipated performance in the second quarter. The automaker has adjusted its projected 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 raised its forecasts for operating cash flow and earnings per share, while slightly lowering net income expectations for shareholders to between $10 billion and $11.4 billion.
In terms of revenue, GM reported $47.9 billion for the second quarter, marking an increase of more than 7% compared to the same period last year and surpassing Wall Street’s expectation of $45 billion, as reported by FactSet. Earnings per share came in at $3.06, exceeding analysts’ predictions of $2.71 and reflecting a growth of 60% from 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 on Tuesday and has increased over 37% this year. The company also announced a third-quarter cash dividend after the market closed on Monday.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs and mentioned the launch of eight new or redesigned models in North America. She expressed excitement over the production of the electric Chevrolet Equinox while emphasizing the company’s commitment to disciplined growth in volume.
Earlier this month, Barra acknowledged that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown. The company plans to remain flexible and build according to demand, although it did experience growth in EV sales last quarter.
Additionally, Barra announced that Cruise, GM’s self-driving division, will discontinue its Origin vehicle in favor of next-generation Chevrolet Bolt models for testing in Texas and Arizona. This decision follows a previous rollback in operations after a significant incident last October and incurs a $600 million charge related to the suspension of Origin production in Detroit.
During a conference call with analysts, Barra noted that using the Bolt would address regulators’ concerns regarding the Origin’s unique design and would also help reduce costs and optimize resources.
GM is also working on restructuring its joint venture in China with SAIC Motor, which continues to face financial losses. The company reported a $104 million loss for the second quarter, and SAIC-GM has significantly reduced production by 70%, delivering 26,000 vehicles, which is 50% less than the same time last year, according to Automotive News.