General Motors has announced an increase in several financial targets for 2024, following a strong performance that exceeded Wall Street expectations during its second quarter. The Detroit-based automaker has raised its anticipated adjusted earnings for the year to between $13 billion and $15 billion, an increase from the previous forecast of $12.5 billion to $14.5 billion. Additionally, GM has adjusted its targets for operating cash flow and earnings per share, while lowering its expectations for net income attributable to shareholders by less than 1%, now estimating between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, representing over a 7% year-over-year increase and surpassing the $45 billion expected by analysts, per FactSet estimates. Earnings per share stood at $3.06, exceeding the anticipated $2.71 and marking a 60% increase from 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
In pre-market trading on Tuesday, GM shares surged nearly 5% and have risen more than 37% this year. On Monday, GM announced a cash dividend for the third quarter, contributing to the stock’s positive performance.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs and mentioned that the company is in the process of launching eight new or redesigned models across various sizes in North America. She emphasized GM’s commitment to disciplined volume growth while ramping up production of the electric Chevrolet Equinox.
However, earlier this month, Barra acknowledged that GM would miss its target of producing 1 million electric vehicles in North America by the end of 2025 due to market slowdowns. Despite this, the company noted a growth in EV sales during the last quarter.
Additionally, Barra announced that Cruise, GM’s self-driving division which had recently curtailed operations, will discontinue its Origin vehicle and instead use the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge related to halting Origin production in Detroit. Barra stated that this shift will address regulatory concerns regarding the unique design of the Origin and help reduce costs.
Barra affirmed GM’s ongoing commitment to transforming mobility through autonomous technology, highlighting that each mile and every simulation brings the company closer to its vision.
Furthermore, GM is restructuring its joint venture with SAIC Motor in China as it confronts ongoing losses, which included a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70%, delivering 26,000 vehicles—50% less than the previous year.