General Motors has increased several financial targets for 2024 after exceeding Wall Street’s expectations in its second-quarter results. The Detroit automaker now anticipates adjusted earnings for the year to range between $13 billion and $15 billion, an increase from the previous forecast of $12.5 billion to $14.5 billion. The company has also raised its expectations for operating cash flow and earnings per share, while slightly reducing its forecast for net income attributable to shareholders, now projected to be between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking over a 7% rise compared to the previous year and surpassing Wall Street’s forecast of $45 billion. Earnings per share stood at $3.06, exceeding analysts’ expectations of $2.71 and representing a 60% increase from 2023. Additionally, net income grew by 14%, reaching $2.9 billion, compared to $2.5 billion.
Following this announcement, GM’s stock rose nearly 5% in pre-market trading, with a year-to-date increase of over 37%. The company also declared a third-quarter cash dividend, contributing to the stock’s upward momentum.
In a message to shareholders, CEO Mary Barra highlighted the success of the company’s gas-powered trucks and SUVs while discussing plans to launch eight new or redesigned vehicle models in North America. She mentioned GM’s ongoing production scaling of the electric Chevrolet Equinox, emphasizing a commitment to disciplined volume growth despite earlier comments that the company would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to market slowdowns.
Barra also announced a shift for Cruise, GM’s self-driving unit, which will discontinue its Origin vehicle in favor of the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge related to the cessation of Origin production in Detroit. Barra explained that the use of the Bolt would address regulators’ concerns regarding the Origin’s unconventional design while also reducing costs and optimizing resources.
“Our vision to transform mobility using autonomous technology remains unchanged, and every mile traveled, every simulation, brings us closer as Cruise continues to operate as an AI-first company,” Barra stated.
Additionally, GM is working to restructure its joint venture with SAIC Motor in China as it reported a $104 million loss in the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering 26,000 vehicles, which is 50% less than the previous year.