General Motors has revised its financial outlook for 2024, exceeding Wall Street’s expectations for the second quarter. The automaker now anticipates adjusted earnings between $13 billion and $15 billion, an increase from the previous estimate of $12.5 billion to $14.5 billion. It has also raised its projections for operating cash flow and earnings per share. However, the forecast for net income attributed to shareholders has been slightly reduced to a range of $10 billion to $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, marking over a 7% rise from the same period last year and surpassing the $45 billion that analysts expected. Earnings per share were recorded at $3.06, outperforming the anticipated $2.71 and reflecting a 60% increase from 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following this news, GM’s stock saw an increase of nearly 5% in pre-market trading, bringing its year-to-date gain to over 37%. Additionally, the company announced a third-quarter cash dividend after Monday’s trading session, further boosting investor confidence.
In her letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gasoline-powered trucks and SUVs and noted the launch of eight new or redesigned models in North America. She emphasized the scaling of production for the electric Chevrolet Equinox and stated that GM remains committed to disciplined volume growth despite earlier comments about not reaching its target of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown.
Barra also shared updates on Cruise, GM’s self-driving unit, which has decided to abandon its Origin vehicle in favor of deploying the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision comes after the company incurred a $600 million charge related to the suspension of Origin production in Detroit. During a conference call with analysts, Barra expressed confidence in this strategic pivot, stating that it would address regulatory concerns and lower costs.
Furthermore, GM is working to restructure its joint venture in China with SAIC Motor, which continues to face financial losses. The company reported a loss of $104 million for the second quarter, with SAIC-GM significantly cutting production by 70% and delivering 26,000 vehicles, a 50% decline compared to the previous year.