General Motors has raised its financial forecasts for 2024 after exceeding Wall Street’s expectations in the second quarter. The automaker has updated its projected adjusted earnings for the year to a range of $13 billion to $15 billion, which is an increase from the previous estimate of $12.5 billion to $14.5 billion. Additionally, GM has adjusted its targets for operating cash flow and earnings per share, while slightly lowering its expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In its second-quarter report, GM announced revenue of $47.9 billion, marking an increase of over 7% from the previous year and surpassing the anticipated $45 billion. The earnings per share stood at $3.06, exceeding analysts’ expectations of $2.71 and representing a 60% increase compared to 2023. The company’s net income rose 14% to $2.9 billion, up from $2.5 billion.
Following the positive report, GM’s stock rose nearly 5% in pre-market trading, reflecting a year-to-date increase of more than 37%. GM also declared a cash dividend for the third quarter, which further boosted investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs. She mentioned that the company is launching eight new or redesigned models in North America, which include compact, mid-size, and full-size vehicles. Barra also discussed the ramp-up in production of the electric Chevrolet Equinox, emphasizing GM’s commitment to disciplined volume growth despite earlier statements indicating the company would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown.
Additionally, Barra announced that Cruise, GM’s autonomous vehicle division, will discontinue the development of its Origin vehicle in favor of using the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge related to the cessation of Origin production.
In a call with analysts, Barra expressed confidence in the future of autonomous technology at GM, stating that the company’s vision remains focused on transforming mobility through AI. She also noted that GM is restructuring its joint venture with SAIC Motor in China, as the company reported a $104 million loss in the second quarter. Earlier, SAIC-GM had cut production by 70%, delivering 26,000 vehicles, which was a 50% decline compared to the previous year.