General Motors has updated its financial outlook for 2024 after exceeding Wall Street’s predictions for its second quarter results. The automaker has raised its projected adjusted earnings for the year to between $13 billion and $15 billion, an increase from the previous estimate of $12.5 billion to $14.5 billion. Additionally, GM has also raised 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.
For the second quarter, GM reported revenues of $47.9 billion, marking a more than 7% increase from the prior year and surpassing the Wall Street expectation of $45 billion. The earnings per share stood at $3.06, exceeding analysts’ estimates of $2.71 and demonstrating a 60% increase compared to 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following the announcement, GM’s stock saw a nearly 5% increase in pre-market trading on Tuesday and has risen over 37% this year. The company also declared a cash dividend for the third quarter, further boosting investor confidence.
In her letter to shareholders, CEO Mary Barra highlighted the successful sales of their gas-powered trucks and SUVs and shared that GM is launching eight new or redesigned vehicle models in North America. She emphasized the company’s focus on scaling production of the electric Chevrolet Equinox, stating, “as excited as we are about our EVs and our early success, we are committed to disciplined volume growth.”
Barra recently acknowledged that GM will not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown. Despite this, the company’s EV sales have seen growth in the last quarter.
Additionally, Barra announced that Cruise, GM’s autonomous driving division, will discontinue its Origin vehicle model, which had previously faced operational setbacks. Instead, Cruise will concentrate on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona, helping to alleviate regulatory concerns regarding the Origin’s unique design. GM incurred a $600 million charge related to the suspension of Origin production in Detroit.
In her remarks to analysts, Barra reaffirmed GM’s commitment to transforming transportation through autonomous technology, highlighting that each mile and simulation brings Cruise closer to that vision.
Lastly, GM is working on restructuring its joint venture with SAIC Motor in China, where the company reported a $104 million loss for the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering only 26,000 vehicles, which is 50% less than the same period last year.