General Motors has announced an increase in several financial projections for 2024 after exceeding Wall Street expectations in its second-quarter results. The company has raised its anticipated adjusted earnings for the year to between $13 billion and $15 billion, up from previous estimates of $12.5 billion to $14.5 billion. It has also adjusted its targets for operating cash flow and earnings per share, although the projection for net income attributable to shareholders has been slightly lowered to between $10 billion and $11.4 billion.
In terms of revenue, GM reported $47.9 billion for the second quarter, representing a more than 7% increase from the previous year and surpassing the Wall Street forecast of $45 billion, according to FactSet estimates. The company’s earnings per share stood at $3.06, exceeding analysts’ expectations of $2.71 and showing a 60% increase from the previous year. Net income also rose 14%, from $2.5 billion to $2.9 billion.
Following this news, GM’s stock rose nearly 5% in pre-market trading and has increased more than 37% so far this year. The company also declared a third-quarter cash dividend, contributing to the stock’s positive momentum.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of its gas-powered trucks and SUVs, noting that GM is set to launch eight new or redesigned models across various categories in North America. She emphasized the company’s commitment to scaling production of electric vehicles, particularly the Chevrolet Equinox, while expressing a disciplined approach to growth despite earlier challenges in reaching the goal of 1 million electric vehicles in North America by the end of 2025.
Barra mentioned that GM’s self-driving unit, Cruise, will discontinue its Origin vehicle in favor of utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a pause in production linked to concerns regarding the Origin’s unique design. GM has taken a $600 million charge related to this halt.
During an analyst call, Barra reassured stakeholders that the company’s vision for transforming mobility through autonomous technology remains intact, stating that ongoing tests and simulations are moving them closer to that goal. Additionally, GM is working to restructure its joint venture with SAIC Motor in China, where it incurred a $104 million loss for the second quarter, as vehicle deliveries significantly dropped compared to last year.