General Motors has revised its financial projections for 2024 following impressive second-quarter results that exceeded Wall Street expectations. The Detroit-based automaker has updated its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, an increase from the previous forecast of $12.5 billion to $14.5 billion. Additionally, GM has raised its expectations for operating cash flow and earnings per share, although it slightly lowered its net income guidance for shareholders to between $10 billion and $11.4 billion, a decrease of less than 1%.
For the second quarter, GM reported revenues of $47.9 billion, reflecting an increase of over 7% from the previous year and surpassing Wall Street’s anticipated $45 billion. Earnings per share were reported at $3.06, exceeding analyst expectations of $2.71 per share and representing a 60% increase compared to 2023. The net income rose by 14%, reaching $2.9 billion, up from $2.5 billion.
Following these announcements, GM’s stock saw a nearly 5% increase in pre-market trading on Tuesday, and the shares have risen more than 37% this year. Additionally, GM declared a third-quarter cash dividend after trading closed on Monday, contributing to the stock’s positive momentum.
In a letter to shareholders, CEO Mary Barra highlighted the success of the company’s gas-powered trucks and SUVs. She announced that GM is set to launch eight new or redesigned models in North America. Barra also emphasized GM’s commitment to scaling up production of the electric Chevrolet Equinox, stating that while they are excited about their electric vehicles (EVs), they remain focused on disciplined growth.
Earlier this month, Barra indicated 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. The company intends to adopt a flexible approach, adjusting production based on demand, although EV sales did see growth in the last quarter.
On the autonomous vehicle front, Barra announced that Cruise, GM’s self-driving division, will discontinue its Origin vehicle in favor of the next-generation Chevrolet Bolt for its tests in Texas and Arizona. This shift comes after Cruise was forced to pause operations due to incidents last October. GM took a $600 million charge associated with halting the production of the Origin.
During an analyst call, Barra mentioned that utilizing the Bolt would address regulatory concerns regarding the Origin’s distinctive design, such as the absence of a steering wheel. She noted that this change would reduce costs and allow GM to optimize its resources.
Despite these changes, Barra reaffirmed GM’s vision to advance mobility through autonomous technology, emphasizing the ongoing importance of every mile traveled and simulation in achieving that goal.
Moreover, GM is working on restructuring its joint venture with SAIC Motor in China as it faces financial losses; the company reported a $104 million loss for the second quarter. In June, production at SAIC-GM was cut by 70%, with vehicle deliveries dropping to 26,000, which is 50% lower than a year earlier.