General Motors has updated its financial forecasts for 2024, exceeding expectations in its second-quarter results.
The automaker has increased its anticipated adjusted earnings to a range of $13 billion to $15 billion, up from an earlier estimate of $12.5 billion to $14.5 billion. Additionally, GM has raised its targets for operating cash flow and earnings per share, while slightly lowering expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, marking over a 7% growth from the previous year and surpassing the Wall Street estimate of $45 billion. Earnings per share were recorded at $3.06, significantly higher than the expected $2.71 and reflecting a 60% increase compared to 2023. The company’s net income rose by 14% to $2.9 billion, compared to $2.5 billion last year.
Following these results, GM’s stock surged nearly 5% in pre-market trading, bringing its annual increase to over 37%. The company also announced a third-quarter cash dividend after market close on Monday, further benefiting its stock price.
In communication to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gasoline-powered trucks and SUVs. She mentioned the company is set to launch eight new or redesigned vehicle models across compact, mid-size, and full-size segments in North America. Barra emphasized GM’s commitment to steady growth in electric vehicle (EV) production, particularly for the Chevrolet Equinox.
Earlier this month, Barra acknowledged the company would miss its goal of producing 1 million electric vehicles in North America by the end of 2025, attributing this to a slowdown in the market. She assured stakeholders that the company would adapt its production to meet demand, despite an increase in EV sales last quarter.
Barra also announced that Cruise, GM’s self-driving subsidiary, has decided to move away from the development of its Origin vehicle after an operational halt last October. Instead, Cruise will concentrate on using the next-generation Chevrolet Bolt for vehicle testing in Texas and Arizona. This shift comes after GM incurred a $600 million charge due to the suspension of Origin production in Detroit.
During a call with analysts, Barra explained that using the Bolt would address regulatory concerns regarding the unique design of the Origin, such as the absence of a steering wheel. She noted that this transition would help reduce costs per unit and optimize GM’s resources.
“Our vision to transform mobility using autonomous technology remains unchanged,” Barra stated, adding that each mile and simulation brings the company closer to its goals as Cruise operates as an AI-first organization.
Furthermore, GM is working to restructure its joint venture in China with SAIC Motor, which continues to report losses, including a $104 million loss in the second quarter. In June, SAIC-GM reduced production by 70%, delivering 26,000 vehicles—a cut of 50% compared to the same period last year, as reported by Automotive News.