General Motors has updated its financial targets for 2024 after exceeding Wall Street’s predictions for its second-quarter earnings. The automaker has revised its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, an increase from the 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 reducing its expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, the company reported revenue of $47.9 billion, which marks over a 7% increase from the previous year and surpasses Wall Street’s forecast of $45 billion. Earnings per share reached $3.06, exceeding the $2.71 expectation and showing a 60% increase compared to 2023. Net income grew by 14%, rising to $2.9 billion from $2.5 billion.
Following these announcements, GM’s stock surged nearly 5% in pre-market trading, contributing to a year-to-date increase of over 37%. The company also declared a third-quarter cash dividend, which provided an additional boost to the stock price.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gasoline-powered trucks and SUVs and mentioned plans to launch eight new or redesigned models across various sizes in North America. She emphasized the company’s commitment to disciplined growth in the production of the electric Chevrolet Equinox, despite acknowledging that GM will not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to market slowdowns.
Furthermore, Barra announced that GM’s self-driving unit, Cruise, would discontinue the Origin vehicle due to previous operational challenges. Instead, Cruise will focus on the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge related to the Origin’s production halt.
During a call with analysts, Barra noted that using the Bolt would address regulatory concerns regarding the Origin’s unique design and would also reduce production costs. She stated that GM’s commitment to transforming mobility through autonomous technology remains strong.
Additionally, GM is working on restructuring its joint venture with SAIC Motor in China, which has been facing losses. The company recorded a $104 million loss in the second quarter, with SAIC-GM cutting production by 70% in June, resulting in a delivery of 26,000 vehicles—50% fewer than the previous year.