General Motors has adjusted its financial outlook for 2024 after exceeding Wall Street forecasts in its second quarter results. The Detroit-based automaker now projects adjusted earnings for the year between $13 billion and $15 billion, up from previous estimates of $12.5 billion to $14.5 billion. Additionally, GM has revised its expectations for operating cash flow and earnings per share, while slightly lowering the forecast 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, marking an increase of over 7% compared to the same period last year and surpassing Wall Street’s expected $45 billion. The company’s earnings per share stood at $3.06, exceeding the analyst expectation of $2.71 and reflecting a 60% increase from 2023. Net income also rose by 14%, totaling $2.9 billion, up from $2.5 billion.
Following the announcement, GM’s stock surged nearly 5% in pre-market trading and has seen over a 37% increase year-to-date. On Monday, GM declared a third-quarter cash dividend, which further contributed to the stock’s positive performance.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs. She mentioned the company’s plan to launch eight new or redesigned vehicle models in North America and noted progress in scaling production of the electric Chevrolet Equinox. Barra emphasized GM’s commitment to “disciplined volume growth” regarding electric vehicles (EVs), despite acknowledging that the company will not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown. She stated that GM would remain flexible and “build to demand,” while EV sales showed growth last quarter.
Barra also discussed the company’s self-driving unit, Cruise, which is shifting focus away from its previously planned Origin vehicle. Instead, Cruise will concentrate on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. The decision follows a $600 million charge associated with halting production of the Origin vehicle in Detroit.
Speaking with analysts, Barra noted that using the Bolt addresses regulatory concerns linked to the Origin’s distinct design, which lacks a traditional steering wheel. This shift is expected to lower costs per unit and help GM make the best use of its resources.
GM is also working to restructure its joint venture in China with SAIC Motor due to ongoing financial losses, reporting a $104 million loss in the second quarter. In June, the joint venture cut production by 70%, delivering only 26,000 vehicles, a 50% decrease compared to the previous year.