General Motors has revised its financial forecasts for 2024 following a strong performance in the second quarter, surpassing Wall Street expectations. The automaker has increased its projected adjusted earnings for the year to a range of $13 billion to $15 billion, up from previous estimates of $12.5 billion to $14.5 billion. Additionally, GM has raised its targets for operating cash flow and earnings per share, while slightly lowering its expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In terms of revenue, GM reported $47.9 billion for the second quarter, marking a more than 7% increase from the previous year and exceeding Wall Street’s anticipated $45 billion, according to FactSet estimates. The company’s earnings per share were $3.06, surpassing the expected $2.71 and showing a 60% increase from 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following this announcement, GM’s stock rose nearly 5% in pre-market trading, continuing a positive trend that has seen the stock increase over 37% this year. The company declared a cash dividend for the third quarter, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the strong sales of gas-powered trucks and SUVs and announced that the company is launching eight new or redesigned models in North America. Barra also mentioned the ramp-up in production for the electric Chevrolet Equinox, emphasizing GM’s commitment to disciplined volume growth, despite earlier comments indicating the company would not meet its electric vehicle production goal of 1 million units by the end of 2025 due to market slowdowns.
Additionally, Barra revealed that Cruise, GM’s autonomous driving division, would discontinue the Origin vehicle after a previous operational setback. Instead, the focus will shift to using the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision comes after GM incurred a $600 million charge linked to halting production of the Origin in Detroit.
Barra reassured analysts that the vision for transforming mobility through autonomous technology remains strong and that lessons learned through every mile and simulation continue to advance Cruise’s development as an AI-first company.
Moreover, GM is working to restructure its joint venture with SAIC Motor in China amid ongoing financial losses, including a reported $104 million loss for the second quarter. Following a significant production cut by SAIC-GM in June, the company delivered 26,000 vehicles, representing a 50% decrease compared to the previous year.