General Motors has announced an increase in its financial targets for 2024 after exceeding Wall Street expectations in the second quarter. The automaker has raised its projected adjusted earnings for the year to between $13 billion and $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. Additionally, GM has adjusted its targets for operating cash flow and earnings per share, though it slightly lowered expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported a revenue of $47.9 billion, surpassing analysts’ expectations of $45 billion and representing a more than 7% increase from the previous year. The company’s earnings per share reached $3.06, exceeding the anticipated $2.71 and reflecting a 60% increase compared to 2023. GM’s net income for the quarter rose by 14% to $2.9 billion from $2.5 billion.
Following the announcement, GM’s stock jumped nearly 5% in pre-market trading and has risen over 37% this year. The company also declared a third-quarter cash dividend, which further boosted its stock value.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs and confirmed the launch of eight new or redesigned models in North America. She also mentioned the ramping up of production for the electric Chevrolet Equinox, stating that GM is committed to disciplined volume growth despite earlier comments suggesting 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 strategic pivot for Cruise, GM’s self-driving unit, which will abandon the development of its Origin vehicle after a setback last October. Instead, Cruise will focus on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. This move is expected to ease regulatory concerns over the Origin’s unique design, including its lack of a steering wheel, and will help reduce costs and optimize resources.
In her remarks, Barra reaffirmed GM’s commitment to transforming mobility through autonomous technology, emphasizing that each mile traveled contributes to progress in the company’s AI-focused approach.
Lastly, GM is working to restructure its joint venture with SAIC Motor in China amid ongoing losses, reporting a $104 million loss for the second quarter. Production cuts by SAIC-GM in June resulted in a delivery of 26,000 vehicles, a 50% decrease compared to the same period last year.