General Motors has upgraded its financial projections for 2024 after exceeding Wall Street’s expectations in its second quarter results. The Detroit-based automaker has revised its anticipated adjusted earnings for the year to range between $13 billion and $15 billion, up from the previous forecast of $12.5 billion to $14.5 billion. Additionally, it increased its targets for operating cash flow and earnings per share, while slightly lowering the expectation for net income attributable to shareholders to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, marking an increase of over 7% compared to the same period last year, and surpassing the $45 billion forecasted by analysts. The company’s earnings per share stood at $3.06, exceeding the anticipated $2.71, and representing a 60% increase from the previous year. Net income grew 14%, reaching $2.9 billion, up from $2.5 billion a year earlier.
Following the report, GM’s stock surged nearly 5% in pre-market trading and has increased more than 37% throughout the year. After trading concluded on Monday, GM declared a third-quarter cash dividend, further bolstering its stock.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gasoline-powered trucks and SUVs while announcing the launch of eight new or redesigned vehicle models in North America. She also mentioned that the company is ramping up production of the electric Chevrolet Equinox, expressing excitement about GM’s early successes in electric vehicles but emphasizing a commitment to sensible volume growth.
Barra previously indicated that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025, citing a slowdown in the market. The company has stated it will remain flexible, focusing on building vehicles according to demand, although EV sales did see growth last quarter.
Additionally, Barra announced that Cruise, GM’s self-driving unit, will discontinue its Origin vehicle following a rollback of operations after an incident last October. Instead, Cruise will shift its focus to the next-generation Chevrolet Bolt for tests in Texas and Arizona. GM incurred a $600 million charge due to the halted production of the Origin in Detroit.
During a conference call, Barra remarked that utilizing the Bolt addresses regulators’ concerns regarding the unique design of the Origin, such as its absence of a steering wheel. This pivot is also expected to reduce per unit costs and allow GM to allocate resources more effectively.
Barra reinstated GM’s commitment to transforming mobility through autonomous technology and emphasized that each mile driven and every simulation contributes to this vision. Furthermore, GM is aiming to restructure its joint venture with SAIC Motor in China as it navigates ongoing losses, which included a $104 million loss for the second quarter. In June, SAIC-GM cut production by 70%, delivering 26,000 vehicles – a 50% decrease from the previous year, as reported by Automotive News.