General Motors has adjusted its financial outlook for 2024 after exceeding Wall Street’s expectations in the second quarter. The Detroit-based automaker has increased its projected adjusted earnings for the year to a range of $13 billion to $15 billion, up from a 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 lowering its net income forecast for shareholders to between $10 billion and $11.4 billion.
For the second quarter, GM reported a revenue of $47.9 billion, marking a more than 7% increase from the prior year and surpassing the anticipated $45 billion, according to FactSet estimates. The company’s earnings per share reached $3.06, exceeding the $2.71 estimate from analysts and showing a 60% increase compared to 2023. Net income rose 14% to $2.9 billion, up from $2.5 billion last year.
As a result of these positive results, GM’s stock experienced nearly a 5% rise in pre-market trading on Tuesday, contributing to an overall increase of more than 37% this year. The company also declared a cash dividend for the third quarter after market closure on Monday, providing an additional boost to the stock.
In a letter to shareholders, CEO Mary Barra emphasized the strong performance of GM’s gas-powered trucks and SUVs, announcing plans to launch eight new or redesigned models in North America. She also mentioned the scaling up of production for the electric Chevrolet Equinox, reinforcing GM’s commitment to disciplined growth in electric vehicles (EVs), even as the company had indicated earlier this month that it would not meet its goal of producing 1 million EVs in North America by the end of 2025 due to a market slowdown.
Furthermore, Barra revealed that Cruise, GM’s self-driving division, will discontinue plans for its Origin vehicle, which had previously faced setbacks. Instead, Cruise will utilize the next-generation Chevrolet Bolt for its vehicle testing in Texas and Arizona. GM took a $600 million charge related to the production halt of the Origin in Detroit, and according to Barra, using the Bolt will address regulatory concerns tied to the Origin’s unique design while also reducing unit costs.
GM continues to face challenges in its joint venture with SAIC Motor in China, where the company reported a loss of $104 million for the second quarter. In June, SAIC-GM significantly cut production by 70%, delivering only 26,000 vehicles, which is a 50% decrease compared to the previous year.