General Motors has increased its financial targets for 2024 following a strong second quarter that exceeded Wall Street predictions. The automaker has raised its anticipated adjusted earnings to a range between $13 billion and $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. Additionally, GM has adjusted its expectations for operating cash flow and earnings per share, while net income projections for shareholders were reduced slightly, now expected to be between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, marking a more than 7% increase from the same period last year and surpassing the $45 billion forecasted by analysts. Earnings per share reached $3.06, exceeding the anticipated $2.71, and showing a notable 60% increase compared to 2023. The company’s net income rose 14% to $2.9 billion, up from $2.5 billion.
In reaction to these results, GM’s stock rose nearly 5% in pre-market trading on Tuesday, contributing to a year-to-date increase of over 37%. Following market close on Monday, GM announced a third-quarter cash dividend, further boosting investor sentiment.
In a message to shareholders, CEO Mary Barra highlighted the popularity of the company’s gas-powered trucks and SUVs. She mentioned that GM is set to launch eight new or redesigned compact, mid-size, and full-size models in North America. Barra also emphasized the ramp-up in production for the electric Chevrolet Equinox and noted the company’s commitment to responsible volume growth in the electric vehicle (EV) sector, despite acknowledging that GM will not achieve its target of producing 1 million EVs in North America by the end of 2025 due to a market slowdown.
Furthermore, Barra announced that Cruise, GM’s self-driving unit, will discontinue its Origin vehicle model following a temporary suspension of operations due to an incident last October. The company will pivot to testing next-generation Chevrolet Bolt vehicles in Texas and Arizona instead, which will address regulatory concerns related to the Origin’s unique design. GM incurred a $600 million expense tied to the halted production of the Origin in Detroit.
Barra reassured investors that GM’s overarching goal of transforming mobility through autonomous technology remains intact, as each step taken moves the company closer to that vision. GM is also working on restructuring its joint venture in China with SAIC Motor amid ongoing losses, reporting a $104 million loss in the second quarter. Earlier, SAIC-GM significantly reduced production, delivering 26,000 vehicles, which is half of what was achieved a year earlier.