General Motors has increased its financial targets for 2024 after exceeding Wall Street’s expectations for its second-quarter performance. The Detroit-based automaker has adjusted its forecast for adjusted earnings, now anticipating between $13 billion and $15 billion, up from the previous range of $12.5 billion to $14.5 billion. Additionally, GM has raised its projections for operating cash flow and earnings per share, although net income expectations attributable to shareholders were slightly decreased, now estimated at between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking a more than 7% increase compared to the same period last year, and surpassing Wall Street’s expectation of $45 billion. Earnings per share reached $3.06, exceeding analysts’ predictions of $2.71, reflecting a 60% increase from 2023. The company’s net income also rose by 14%, totaling $2.9 billion, compared to $2.5 billion in the previous year.
Following this positive performance, GM’s stock rose nearly 5% in pre-market trading and has climbed over 37% year-to-date. The company also declared a cash dividend for the third quarter, boosting investor confidence.
In her letter to shareholders, CEO Mary Barra highlighted the strong performance of the company’s gas-powered trucks and SUVs, while noting that GM is launching eight new or redesigned models across various sizes in North America. She also emphasized the ramp-up of production for the electric Chevrolet Equinox, stating the company’s commitment to disciplined volume growth despite earlier comments suggesting GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to market slowdowns.
Barra indicated that GM plans to be flexible and focus on “build to demand,” although EV sales have seen growth in the last quarter. Additionally, she disclosed a significant shift in Cruise, GM’s self-driving division, which will abandon its unique Origin vehicle project in favor of using 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.
During a call with analysts, Barra expressed confidence in Cruise’s mission to innovate mobility with autonomous technology, emphasizing that every test and simulation allows the company to progress toward its goals. Finally, GM is also working to restructure its joint venture in China with SAIC Motor, as losses continue; the company reported a $104 million loss for the second quarter. This follows a significant production cut by SAIC-GM in June, which saw a 70% reduction in output, resulting in the delivery of only 26,000 vehicles, a drop of 50% from the previous year.