General Motors has increased several financial targets for 2024 following strong results that exceeded Wall Street expectations for its second quarter. The automaker has adjusted its anticipated adjusted earnings for the year upward to a range of $13 billion to $15 billion, surpassing the previous estimate of $12.5 billion to $14.5 billion. It has also raised its projections for operating cash flow and earnings per share, while slightly reducing the outlook 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, marking a more than 7% increase from the previous year and surpassing the $45 billion forecasted by analysts, as per FactSet estimates. The company’s earnings per share were $3.06, exceeding the expected $2.71 and representing a 60% increase compared to 2023. Additionally, net income rose by 14% to $2.9 billion, up from $2.5 billion a year earlier.
As a result, GM shares rose nearly 5% in pre-market trading on Tuesday and have increased over 37% this year. Additionally, GM announced a third-quarter cash dividend after the market closed on Monday, further enhancing investor sentiment.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs, mentioning that the company is set to launch eight new or redesigned models in North America. Barra confirmed that GM is ramping up production for the electric Chevrolet Equinox and reinforced the company’s commitment to disciplined growth in electric vehicle production.
Earlier in the month, Barra acknowledged that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025, attributing this to a slowdown in the market. However, she noted that EV sales increased last quarter, and the company intends to adapt its production to meet demand.
Furthermore, Barra announced that GM’s self-driving unit, Cruise, will discontinue its Origin vehicle, which was previously subjected to operational restrictions due to an incident last October. Instead, Cruise will utilize the next-generation Chevrolet Bolt for testing its vehicles in Texas and Arizona, allowing the company to address regulatory concerns regarding the Origin’s unconventional design and reduce production costs.
“Our vision to transform mobility using autonomous technology is unchanged,” Barra stated, reaffirming Cruise’s commitment as an AI-focused company.
GM is also working on restructuring its joint venture in China with SAIC Motor, as the company endured a $104 million loss for the second quarter. In June, production at SAIC-GM was reduced by 70%, resulting in only 26,000 vehicle deliveries, down 50% compared to the prior year, according to Automotive News.