General Motors has revised its financial expectations for 2024 following a strong second quarter that exceeded Wall Street’s forecasts. The company has raised its projected adjusted earnings for the year to between $13 billion and $15 billion, up from the previous forecast of $12.5 billion to $14.5 billion. In addition, GM has updated its targets for operating cash flow and earnings per share, while slightly lowering expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, representing a more than 7% increase from the previous year and surpassing the $45 billion anticipated by analysts. Earnings per share reached $3.06, exceeding expectations of $2.71 and marking a 60% increase from 2023. The company’s net income rose by 14% to $2.9 billion, up from $2.5 billion last year.
As a result of these positive results, GM’s stock surged nearly 5% in pre-market trading on Tuesday and has increased over 37% this year. Following the close of trading on Monday, GM announced a third-quarter cash dividend, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the success of the company’s lineup of gas-powered trucks and SUVs and announced plans to introduce eight new or revamped models in North America. She also emphasized GM’s commitment to scaling production of the electric Chevrolet Equinox, stating that while they are excited about their electric vehicles (EVs), they are dedicated to managing growth responsibly.
Barra noted earlier this month that GM would not achieve its goal of producing 1 million electric vehicles in North America by the end of 2025, attributing the delay to a slowdown in the market. However, the company is adapting to demand, and its EV sales did see an increase last quarter.
Additionally, Barra announced changes to Cruise, GM’s self-driving division, which will discontinue its Origin vehicle due to production issues from an incident last October. Instead, Cruise will focus on testing the next-generation Chevrolet Bolt in Texas and Arizona. GM recorded a $600 million charge related to halting production of the Origin.
During a call with analysts, Barra explained that using the Bolt would address regulators’ concerns about the Origin’s unconventional design, such as its absence of a steering wheel. This shift will also help reduce per-unit costs and optimize resource allocation.
Barra affirmed GM’s unwavering vision to advance mobility through autonomous technology, stating that every mile and simulation brings the company closer to that goal.
Furthermore, GM is working to restructure its joint venture with SAIC Motor in China, as it has been incurring losses — including a $104 million loss in the second quarter. In June, SAIC-GM reduced production by 70%, delivering 26,000 vehicles, which is a 50% decrease compared to the same period last year.