General Motors has announced an increase in its financial projections for 2024, surpassing Wall Street’s expectations for its second quarter results. The Detroit-based automaker now anticipates adjusted earnings between $13 billion and $15 billion, raised from previous estimates of $12.5 billion to $14.5 billion. Additionally, GM has increased its targets for operating cash flow and earnings per share, while slightly lowering the expectation for net income attributable to shareholders to a range of $10 billion to $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, reflecting a more than 7% increase year-over-year and exceeding the anticipated $45 billion from Wall Street analysts, as per FactSet estimates. The company’s earnings per share stood at $3.06, surpassing the expected $2.71 and marking a 60% rise compared to 2023. Net income also showed growth, increasing 14% to $2.9 billion from $2.5 billion in the prior year.
As a result, GM’s stock surged nearly 5% in pre-market trading on Tuesday, with shares up more than 37% year-to-date. Following the close of trading on Monday, GM declared a cash dividend for the third quarter, contributing to the stock’s positive performance.
In a letter to shareholders, CEO Mary Barra highlighted the strong sales of GM’s gas-powered trucks and SUVs while announcing plans to introduce eight new or redesigned models in North America, covering compact to full-size categories. Barra also mentioned the ramp-up in production of the electric Chevrolet Equinox, reaffirming the company’s commitment to disciplined volume growth despite previous comments indicating that GM would not meet its electric vehicle production target of 1 million units in North America by 2025, due to market slowdowns. However, EV sales did see growth last quarter.
In a notable shift, Barra revealed that Cruise, GM’s autonomous vehicle division, is discontinuing its Origin vehicle following operational setbacks last October. Instead, Cruise will leverage the next-generation Chevrolet Bolt for testing in Texas and Arizona. This change is expected to address regulatory concerns regarding the unique design of the Origin, such as its absence of a steering wheel, and will help reduce unit costs and better allocate resources.
Barra emphasized the company’s ongoing commitment to transforming mobility through autonomous technology, noting that every mile traveled and every simulation is a step closer to that vision.
Additionally, GM is working to restructure its joint venture in China with SAIC Motor, as it continues to face financial losses. The company reported a $104 million loss for the second quarter. In June, production at the SAIC-GM venture was cut by 70%, resulting in the delivery of just 26,000 vehicles, which is 50% lower than the previous year, according to industry reports.