General Motors has revised its financial targets for 2024 after exceeding Wall Street’s expectations in the second quarter. The Detroit-based automaker now anticipates adjusted earnings to range between $13 billion and $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. Additionally, GM has increased its operating cash flow and earnings per share targets, although it lowered its expectations for net income attributable to shareholders slightly to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking a more than 7% increase from the previous year and surpassing the $45 billion forecast by analysts. The earnings per share came in at $3.06, exceeding the expected $2.71 and representing a 60% increase compared to 2023. Net income rose 14% to $2.9 billion, up from $2.5 billion.
Following this strong performance, GM’s stock surged nearly 5% in pre-market trading and has risen over 37% this year. The company announced a cash dividend for the third quarter, contributing further to the stock’s increase.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs, noting the launch of eight new or redesigned vehicle models in North America. She remarked on the scaling production of the electric Chevrolet Equinox and affirmed GM’s commitment to disciplined growth in electric vehicles (EVs), despite acknowledging the challenges in meeting the target of producing 1 million EVs in North America by 2025 due to a market slowdown.
Barra also announced a strategic shift for Cruise, GM’s self-driving subsidiary, which will pivot from the Origin vehicle to using the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge related to the halted production of the Origin.
During an analyst call, Barra emphasized that using the Bolt would address regulatory concerns regarding the Origin’s design and reduce costs, enabling GM to better allocate resources. She reiterated GM’s commitment to innovation in autonomous technology, stating that each advancement brings the company closer to its goals.
Additionally, GM is working to restructure its joint venture in China with SAIC Motor, as the partnership continues to experience losses. In the second quarter, GM reported a loss of $104 million from this venture, with SAIC-GM cutting production by 70% and delivering 26,000 vehicles, a decrease of 50% compared to the previous year.