General Motors (GM) has adjusted its financial targets for 2024 after exceeding Wall Street’s expectations in the second quarter. The Detroit-based automaker increased its forecasted adjusted earnings for the year to a range of $13 billion to $15 billion, revising it from an earlier estimate of $12.5 billion to $14.5 billion. Additionally, GM raised its expectations for operating cash flow and earnings per share, while slightly lowering its forecast for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, reflecting a year-over-year increase of more than 7% and surpassing Wall Street’s anticipated $45 billion. Earnings per share reached $3.06, exceeding analysts’ expectations of $2.71 and marking a 60% increase from the previous year. The company’s net income rose by 14% to $2.9 billion, up from $2.5 billion.
GM’s stock price surged nearly 5% in pre-market trading on Tuesday, marking a year-to-date increase of over 37%. Following the close of trading on Monday, GM announced a cash dividend for the third quarter, contributing to the stock’s positive momentum.
In her letter to shareholders, CEO Mary Barra highlighted the strong performance of its gas-powered trucks and SUVs. She mentioned that the company plans to launch eight new or redesigned models across various sizes in North America. Barra emphasized GM’s commitment to disciplined volume growth as production ramps up for the electric Chevrolet Equinox, despite earlier acknowledging that the company would not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to market slowdowns.
Additionally, Barra noted a shift in strategy for Cruise, GM’s self-driving unit which paused operations following an incident last October. Cruise will abandon its plans for the Origin vehicle and instead focus on testing next-generation Chevrolet Bolts in Texas and Arizona. The company incurred a $600 million charge related to the suspension of Origin production in Detroit.
During a call with analysts, Barra reassured stakeholders about the focus on autonomous technology, stating that every mile and simulation takes Cruise closer to its goals.
GM is also looking to restructure its joint venture in China with SAIC Motor as it continues to face losses; the automaker reported a $104 million loss in the second quarter. In June, production cuts at SAIC-GM reached 70%, delivering only 26,000 vehicles, which is a 50% decrease compared to the same period last year.