General Motors has increased several financial projections for 2024 after exceeding Wall Street’s expectations in the second quarter. The automaker has revised its anticipated adjusted earnings for the year, now estimating between $13 billion and $15 billion, up from the previous range of $12.5 billion to $14.5 billion. Additionally, GM has raised its targets for operating cash flow and earnings per share, while slightly lowering its 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, reflecting a more than 7% increase from the same period last year and surpassing Wall Street’s forecast of $45 billion, according to FactSet estimates. The company’s earnings per share reached $3.06, exceeding analysts’ expectations of $2.71 per share and representing a 60% increase from 2023. Net income rose by 14%, amounting to $2.9 billion, compared to $2.5 billion in the previous year.
As a result, GM’s stock rose nearly 5% in pre-market trading on Tuesday, contributing to a year-to-date increase of over 37%. Following the close of trading on Monday, GM announced a cash dividend for the third quarter, further boosting the stock.
In her letter to shareholders, CEO Mary Barra highlighted the strong sales of the company’s gas-powered trucks and SUVs. She also mentioned the launch of eight new or redesigned models in North America, including the scaled production of the electric Chevrolet Equinox. Barra emphasized the company’s dedication to disciplined volume growth, despite acknowledging 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. However, she noted that EV sales had increased in the last quarter.
On the subject of autonomous vehicles, Barra announced that Cruise, GM’s self-driving division, will discontinue its Origin vehicle, which faced operational challenges last year. Instead, Cruise will focus on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge related to the production halt of the Origin in Detroit. Barra explained that using the Bolt would address regulatory concerns about the Origin’s unique design and help lower costs while optimizing resources.
Barra reaffirmed GM’s commitment to transforming mobility through autonomous technology, stating that every mile traveled and simulation brings the company closer to its goals, as Cruise operates with an AI-first approach.
GM is also restructuring its joint venture in China with SAIC Motor due to ongoing losses, reporting a $104 million loss for the second quarter. In June, SAIC-GM reduced its production by 70%, delivering only 26,000 vehicles, which is 50% fewer than the previous year, as reported by Automotive News.