General Motors has updated its financial outlook for 2024 after significantly outperforming Wall Street’s expectations in the second quarter. The company has revised its adjusted earnings forecast for the year, now anticipating between $13 billion and $15 billion, up from the previous range of $12.5 billion to $14.5 billion. Additionally, GM has increased its targets for operating cash flow and earnings per share, while slightly lowering the forecast for net income attributable to shareholders to between $10 billion and $11.4 billion.
In its second-quarter report, GM reported revenue of $47.9 billion, which marks an increase of more than 7% compared to last year and exceeds the $45 billion expected by analysts. Earnings per share were reported at $3.06, surpassing the $2.71 per share estimate, and representing a 60% increase from 2023. The company’s net income rose by 14% to $2.9 billion, up from $2.5 billion in the same period last year.
Following the announcement, GM’s stock jumped nearly 5% in pre-market trading, extending its year-to-date gain to over 37%. The automaker also declared a third-quarter cash dividend after the market closed on Monday, contributing to the stock’s upward momentum.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs and stated that the company is preparing to launch eight new or redesigned vehicles in North America, covering various market segments. Barra emphasized GM’s commitment to scaling production of the electric Chevrolet Equinox while also signaling a disciplined approach toward growth in electric vehicle (EV) production.
Earlier this month, Barra acknowledged that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to market conditions. She noted that the company would adapt to demand fluctuations and mentioned a growing trend in EV sales during the last quarter.
Moreover, Barra revealed that GM’s self-driving division, Cruise, would discontinue its Origin vehicle model, which had faced challenges following an incident last October. Instead, the company will focus on utilizing the next-generation Chevrolet Bolt for testing its autonomous vehicles in Texas and Arizona. This decision follows a $600 million charge taken by GM due to the suspension of Origin production in Detroit.
During a call with analysts, Barra expressed confidence in Cruise’s mission to innovate mobility through autonomous technology, stating that every mile and simulation advances the company toward its goals. Additionally, GM is working on restructuring its joint venture with SAIC Motor in China, where the company recorded a $104 million loss in the second quarter. In June, SAIC-GM reduced production by 70%, resulting in 26,000 vehicle deliveries, which was 50% lower than the previous year.