General Motors has revised its financial projections for 2024 after exceeding Wall Street forecasts for its second quarter. The Detroit-based automaker has increased its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, up from a previous estimate 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 expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, marking over a 7% increase compared to the previous year, surpassing Wall Street’s expectation of $45 billion. Earnings per share came in at $3.06, exceeding the analysts’ prediction of $2.71 and representing a 60% rise from 2023. Net income increased by 14%, reaching $2.9 billion, up from $2.5 billion.
Following these announcements, GM’s stock rose nearly 5% in pre-market trading on Tuesday, bringing its gains for the year to more than 37%. The company also declared a third-quarter cash dividend, contributing 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. She mentioned plans to introduce eight new or redesigned models across compact, mid-size, and full-size segments in North America. Barra reaffirmed the company’s commitment to disciplined volume growth for the electric Chevrolet Equinox, despite earlier comments indicating that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to market challenges. Nevertheless, EV sales showed growth in the last quarter.
Barra also announced that Cruise, GM’s autonomous driving division, would discontinue its Origin vehicle after re-evaluating operations post an incident last October. Instead, Cruise will focus on testing the next-generation Chevrolet Bolt in Texas and Arizona. Additionally, GM expects the change to address regulatory concerns regarding the Origin’s steering wheel-less design and to reduce costs.
Furthermore, GM is working to restructure its joint venture with SAIC Motor in China, as it faces ongoing financial losses, including a $104 million loss in the second quarter. Production cuts by SAIC-GM in June led to a 70% decrease in output, resulting in the delivery of 26,000 vehicles, a 50% drop compared to the previous year.