General Motors has increased several financial targets for 2024 after exceeding Wall Street expectations in its second quarter results. The Detroit-based automaker has raised its adjusted earnings forecast for the year to between $13 billion and $15 billion, up from a previous range of $12.5 billion to $14.5 billion. Additionally, GM has revised its operating cash flow and earnings per share targets upward, though it slightly adjusted its expectations for net income attributable to shareholders downward to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking a more than 7% increase from the previous year and surpassing the Wall Street expectation of $45 billion. Earnings per share stood at $3.06, which exceeds the projected $2.71 and represents a 60% rise compared to 2023. Net income for the quarter rose 14% to $2.9 billion, growing from $2.5 billion the prior year.
As a result of these positive earnings, GM’s stock saw an almost 5% rise in pre-market trading on Tuesday, with the stock up over 37% year-to-date. Following Monday’s close, GM also declared a cash dividend for the third quarter, contributing to the stock’s rally.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs and mentioned the company’s plans to launch eight new or redesigned models in North America. She also discussed scaling production of the electric Chevrolet Equinox, emphasizing the company’s commitment to disciplined volume growth despite recent challenges. Barra acknowledged that GM will not meet its goal of producing 1 million electric vehicles in North America by the end of 2025, citing market slowdowns and expressing a need to adapt production to demand.
In a recent announcement, Barra stated that Cruise, GM’s autonomous vehicle unit, would discontinue its Origin vehicle and instead utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a previous incident that led to a halt in Cruise’s operations. GM recorded a $600 million charge associated with the suspension of Origin production in Detroit. Barra noted that this shift would address regulatory concerns regarding the Design of the Origin and help reduce costs while optimizing resources.
“We’re committed to transforming mobility with autonomous technology, and every mile traveled and simulation brings us closer,” Barra said, reinforcing Cruise’s focus as an AI-first company.
Moreover, GM is working to restructure its joint venture with SAIC Motor in China amid ongoing losses, reporting a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70%, delivering 26,000 vehicles, which is a 50% decline compared to the same period a year ago.