General Motors has revised its financial projections for 2024 after exceeding Wall Street’s expectations in the second quarter. The company has increased its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous forecast of $12.5 billion to $14.5 billion. Additionally, GM has raised its targets for operating cash flow and earnings per share, while slightly decreasing its expectations for net income attributable to shareholders to between $10 billion and $11.4 billion, a reduction of less than 1%.
In the second quarter, GM reported revenue of $47.9 billion, marking a year-over-year increase of over 7% and surpassing Wall Street’s anticipated $45 billion, according to FactSet estimates. The company’s earnings per share stood at $3.06, significantly exceeding the expected $2.71 and demonstrating a 60% increase compared to 2023. Net income rose by 14%, reaching $2.9 billion compared to $2.5 billion the previous year.
Following this news, GM’s stock surged nearly 5% in pre-market trading on Tuesday, continuing a strong performance as the stock has risen more than 37% this year. Furthermore, GM announced a cash dividend for the third quarter, contributing to the stock’s positive movement.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs. She also mentioned the company is set to launch eight new or redesigned vehicle models in North America. GM is scaling production of the electric Chevrolet Equinox, with Barra emphasizing the company’s dedication to disciplined volume growth despite expressing earlier that they would not meet the 1 million electric vehicle production target in North America by 2025 due to market conditions.
Additionally, Barra announced that GM’s self-driving division, Cruise, would pivot away from its Origin vehicle due to regulatory concerns and previous operational setbacks. Instead, Cruise will utilize the next-generation Chevrolet Bolt for ongoing tests in Texas and Arizona, with GM having taken a $600 million charge related to the halt in Origin production.
During an analyst call, Barra reassured stakeholders that the vision for transforming mobility through autonomous technology remains intact. She noted that moving to the Bolt platform would address regulatory issues and improve cost management.
In China, GM is working to restructure its joint venture with SAIC Motor, which has been posting losses. The company reported a $104 million loss in the second quarter, while SAIC-GM cut production by 70% in June, delivering only 26,000 vehicles—50% fewer than the previous year.