General Motors has updated several financial forecasts for 2024 after exceeding Wall Street’s expectations in the second quarter. The automaker has raised its projected adjusted earnings for the year to a range of $13 billion to $15 billion, an increase from $12.5 billion to $14.5 billion. Additionally, GM has elevated its targets for operating cash flow and earnings per share, while slightly lowering the expectation 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, marking over a 7% increase from the previous year and surpassing Wall Street’s projection of $45 billion, based on FactSet estimates. Earnings per share reached $3.06, exceeding the anticipated $2.71 and reflecting a 60% increase compared to 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
In pre-market trading on Tuesday, GM’s stock spiked nearly 5%, building on a more than 37% increase throughout the year. Following Monday’s market close, GM announced a cash dividend for the third quarter, further boosting investor confidence.
CEO Mary Barra highlighted the success of the company’s gas-powered trucks and SUVs in a letter to shareholders. She mentioned plans to launch eight new or redesigned models across various sizes in North America. Barra also reiterated GM’s commitment to increasing production of the electric Chevrolet Equinox, stating their dedication to disciplined volume growth amid excitement for their electric vehicles (EVs), despite acknowledging a setback in their goal to produce 1 million EVs in North America by the end of 2025 due to a market slowdown.
Additionally, Barra announced that Cruise, GM’s self-driving vehicle unit, will abandon its Origin vehicle model in favor of the next-generation Chevrolet Bolt for testing operations in Texas and Arizona. The decision follows a $600 million charge associated with halting Origin production in Detroit. Barra indicated that utilizing the Bolt will address regulatory concerns about the Origin’s unconventional design, like the absence of a steering wheel, while reducing unit costs and optimizing resources.
Barra affirmed GM’s aspiration to revolutionize mobility through autonomous technology, stating that each mile and simulation brings the company closer to its goals as Cruise continues to prioritize artificial intelligence.
Moreover, GM is working to restructure its joint venture with SAIC Motor in China amid ongoing losses, reporting a $104 million loss in the second quarter. SAIC-GM notably cut production by 70% in June, delivering just 26,000 vehicles, a decrease of 50% compared to the same period last year, according to Automotive News.