General Motors has raised its financial outlook for 2024 after exceeding Wall Street’s expectations in its second quarter results. The Detroit-based automaker adjusted its forecast for adjusted earnings to between $13 billion and $15 billion, an increase from the previous estimate of $12.5 billion to $14.5 billion. It also revised its targets for operating cash flow and earnings per share, while slightly lowering the 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, a rise of over 7% compared to the same period last year and higher than the anticipated $45 billion. Earnings per share reached $3.06, surpassing analysts’ expectations of $2.71 and increasing 60% from 2023. Net income rose 14% to $2.9 billion, up from $2.5 billion.
Following the announcement, GM’s stock surged nearly 5% in pre-market trading and has increased by more than 37% this year. GM also declared a cash dividend for the third quarter, contributing to the stock’s positive performance.
In a letter to shareholders, CEO Mary Barra credited the strong performance to the popularity of the company’s gas-powered trucks and SUVs. She highlighted that GM is in the process of launching eight new or redesigned models in North America and is ramping up production of the electric Chevrolet Equinox. Barra emphasized the company’s commitment to disciplined volume growth in the electric vehicle (EV) sector, despite earlier acknowledging that GM would not meet its goal of producing 1 million EVs in North America by the end of 2025 due to market slowdowns.
Additionally, GM announced changes to its self-driving unit, Cruise, which will no longer pursue its Origin vehicle. Instead, the focus will shift to utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. This shift will address regulatory concerns about the Origin’s design and optimize production costs, as GM incurred a $600 million expense related to the halted production of the Origin.
Barra reaffirmed the company’s vision for transforming mobility through autonomous technology, stating that every mile traveled and simulation brings the company closer to its goals. GM is also working to restructure its joint venture with SAIC Motor in China, which has experienced losses, reporting a $104 million loss in the second quarter and cutting production by 70% in June compared to the prior year.