General Motors has announced an increase in its financial targets for 2024 after exceeding Wall Street projections in its second-quarter results.
The automaker raised its adjusted earnings forecast for the year to a range of $13 billion to $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. Additionally, GM has increased its expectations for operating cash flow and earnings per share, while slightly lowering the forecast for net income attributable to shareholders by less than 1%, now anticipated to be between $10 billion and $11.4 billion.
In its second-quarter results, GM reported revenue of $47.9 billion, marking over a 7% increase from the previous year and surpassing Wall Street’s expectation of $45 billion. Earnings per share were reported at $3.06, exceeding the $2.71 predicted by analysts and representing a 60% growth compared to 2023. The company’s net income rose by 14% to $2.9 billion, up from $2.5 billion.
GM’s stock rose nearly 5% in pre-market trading following the announcement. The stock has increased by over 37% this year. The company also declared a cash dividend for the third quarter, which contributed to the stock’s positive momentum.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs and mentioned plans to launch eight new or redesigned models in North America. She noted the ramp-up of production for the electric Chevrolet Equinox, affirming the company’s commitment to disciplined growth in electric vehicle (EV) production.
Barra acknowledged earlier statements indicating that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025, attributing the delay to a market slowdown. However, GM’s EV sales saw growth last quarter, and the company plans to adapt its production to match demand.
Barra also revealed that Cruise, GM’s autonomous driving division, has decided to discontinue its Origin vehicle after facing challenges that led to a rollback of operations last October. Cruise will focus on utilizing the next-generation Chevrolet Bolt during testing in Texas and Arizona. GM recorded a $600 million charge related to the suspension of the Origin’s production in Detroit, with Barra stating that the use of the Bolt would address regulatory concerns regarding the Origin’s unconventional design.
Despite these challenges, Barra affirmed GM’s commitment to transforming mobility through autonomous technology, emphasizing that each mile traveled and simulation gets the company closer to its goals.
Additionally, GM is working on restructuring its joint venture with SAIC Motor in China, as it continues to experience losses. The automaker reported a $104 million loss in the second quarter, while SAIC-GM reduced production by 70% in June, delivering 26,000 vehicles, which is 50% less than the prior year.