General Motors has updated its financial forecasts for 2024, following a strong performance that exceeded Wall Street predictions for its second quarter. The automaker now anticipates adjusted earnings between $13 billion and $15 billion, an increase from the previous range of $12.5 billion to $14.5 billion. Additionally, GM has raised its targets for operating cash flow and earnings per share, although it slightly lowered its 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, reflecting an increase of over 7% compared to the previous year and surpassing the $45 billion estimate from analysts, according to FactSet data. The company posted earnings per share of $3.06, exceeding the expected $2.71, and showing a 60% increase from 2023. Net income rose 14% to $2.9 billion, up from $2.5 billion.
Following these announcements, GM’s stock rose nearly 5% in pre-market trading, contributing to a year-to-date increase of more than 37%. After markets closed on Monday, GM also declared a cash dividend for the third quarter, further boosting investor sentiment.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs, noting that the company plans to launch eight new or redesigned models across different segments in North America. Barra also mentioned the ramp-up of production for the electric Chevrolet Equinox, reiterating the company’s commitment to measured growth in this market despite acknowledging a setback in the goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown.
Further changes were announced regarding Cruise, GM’s self-driving subsidiary, which has decided to discontinue the Origin vehicle following operational setbacks. Going forward, Cruise will focus on testing next-generation Chevrolet Bolt vehicles in Texas and Arizona. GM has incurred a $600 million charge related to the discontinuation of the Origin’s production in Detroit.
During an analyst call, Barra expressed confidence in the ongoing goal to innovate mobility through autonomous technology, emphasizing that Cruise remains an AI-driven company. Additionally, GM is working to restructure its joint venture in China with SAIC Motor as it faces ongoing losses, which included a $104 million loss in the second quarter. In June, SAIC-GM drastically reduced production by 70%, delivering 26,000 vehicles, marking a 50% decrease from the previous year.