General Motors has increased several financial targets for 2024 after surpassing Wall Street expectations in its second quarter results. The automaker raised its projected adjusted earnings for the year to a range of $13 billion to $15 billion, up from an earlier forecast of $12.5 billion to $14.5 billion. It also revised its targets for operating cash flow and earnings per share, while slightly lowering the expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenues of $47.9 billion, marking an increase of over 7% compared to the same period last year, and exceeding Wall Street’s expectation of $45 billion. Earnings per share were reported at $3.06, surpassing analysts’ predictions of $2.71 per share and showing a 60% increase from 2023. Net income also rose by 14% to $2.9 billion, up from $2.5 billion.
Following the announcement, GM’s stock rose nearly 5% in pre-market trading and has seen an increase of over 37% this year. Additionally, GM declared a third-quarter cash dividend after trading closed on Monday, providing a further boost to its stock.
In a letter to shareholders, CEO Mary Barra highlighted the success of the company’s gas-powered trucks and SUVs, and mentioned the launch of eight new or redesigned vehicle models in North America. She emphasized the ramp-up in production of the electric Chevrolet Equinox, stating that the company is committed to disciplined volume growth despite previous challenges. Barra had previously indicated that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025, attributing this to a slowing market. However, she noted that EV sales had increased in the last quarter.
Barra also addressed the self-driving division, Cruise, which had to scale back operations after an incident in October. The company will discontinue the production of its Origin vehicle and instead focus on using the next-generation Chevrolet Bolt for testing purposes. This decision follows a $600 million charge related to the halt in production of the Origin. Barra explained that using the Bolt would alleviate regulatory concerns regarding the Origin’s unique design and help reduce costs.
Furthermore, GM is working to restructure its joint venture with SAIC Motor in China, following a $104 million loss in the second quarter. In June, SAIC-GM had to cut production by 70%, resulting in 26,000 vehicles delivered, which is 50% lower than the previous year.