General Motors has revised its financial outlook for 2024 after exceeding Wall Street predictions for its second quarter performance. The automaker has increased its adjusted earnings forecast for the year 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 set higher targets for operating cash flow and earnings per share, although it slightly lowered its 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 a more than 7% increase from the previous year, surpassing Wall Street’s anticipated $45 billion. Earnings per share reached $3.06, exceeding analyst predictions of $2.71 and reflecting a 60% increase compared to 2023. Net income rose by 14%, totaling $2.9 billion, an increase from $2.5 billion.
In pre-market trading on Tuesday, GM stock surged nearly 5%, and it has gained over 37% this year. The stock received a boost following the announcement of a third-quarter cash dividend after market close on Monday.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs, along with plans to launch eight new or redesigned models across various sizes in North America. Barra emphasized the company’s commitment to disciplined growth in electric vehicle (EV) production, despite earlier comments indicating that GM would not meet its goal of producing 1 million EVs in North America by the end of 2025 due to a market slowdown.
Barra also announced a shift in strategy for Cruise, GM’s self-driving unit, which will discontinue its Origin vehicle in favor of the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge related to the halted production of the Origin in Detroit. Barra noted that using the Bolt would address regulatory concerns regarding the Origin’s unique design and reduce unit costs.
In addition, GM is working to restructure its joint venture with SAIC Motor in China, as the company reported a $104 million loss in that market for the second quarter. Following significant production cuts by SAIC-GM, vehicle deliveries dropped by 50% compared to the previous year, with only 26,000 vehicles delivered.