General Motors has revised its financial forecasts for 2024 following impressive results that exceeded Wall Street’s expectations during the second quarter. The automaker has increased its projected adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion, alongside raised targets for operating cash flow and earnings per share. However, the outlook for net income attributable to shareholders has been slightly reduced by less than 1%, now expected to be between $10 billion and $11.4 billion.
In terms of revenue, GM reported $47.9 billion for the second quarter, which reflects a year-over-year increase of more than 7% and surpasses Wall Street’s anticipated $45 billion, according to FactSet estimates. The earnings per share reached $3.06, exceeding the anticipated $2.71 and representing a 60% increase compared to 2023. Net income rose 14% to $2.9 billion, up from $2.5 billion.
In pre-market trading on Tuesday, GM’s stock rose nearly 5%. The stock has shown significant growth of over 37% this year. Following the market closure on Monday, GM announced a third-quarter cash dividend, which contributed to the stock’s positive momentum.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs, emphasizing the launch of eight new or redesigned models across various sizes in North America. She also mentioned the scaling of production for the electric Chevrolet Equinox, underscoring the company’s commitment to “disciplined volume growth” despite an earlier statement regarding delays in reaching the goal of producing 1 million electric vehicles in North America by the end of 2025, attributed to a market slowdown. While EV sales did see growth last quarter, GM intends to be flexible and “build to demand.”
Barra also announced a strategic shift for Cruise, GM’s self-driving unit, which will abandon the Origin vehicle after halting operations last October. Instead, Cruise will utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. This change will lower production costs and address regulatory concerns regarding the Origin’s design, which lacked a traditional steering wheel.
“Our vision to transform mobility using autonomous technology is unchanged, and every mile traveled, and every simulation, brings us closer because Cruise is an AI-first company,” Barra stated.
Additionally, GM is working on restructuring its joint venture in China with SAIC Motor amid ongoing losses, reporting a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70%, delivering only 26,000 vehicles, which is 50% less than the previous year, according to Automotive News.