General Motors has raised its financial outlook for 2024 following a strong second quarter that exceeded Wall Street’s forecasts. The automaker has increased its expected adjusted earnings for the year to between $13 billion and $15 billion, an increase from the previous forecast 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 net income expectations for shareholders to between $10 billion and $11.4 billion.
In its second-quarter report, GM reported revenues of $47.9 billion, a year-over-year increase of more than 7%, surpassing Wall Street’s estimated $45 billion, according to FactSet. The company’s earnings per share stood at $3.06, exceeding analysts’ expectations of $2.71 and representing a 60% increase compared to 2023. Net income rose 14% to $2.9 billion, up from $2.5 billion.
Following the news, GM’s stock surged nearly 5% in pre-market trading on Tuesday and has seen an increase of over 37% this year. The company also announced a third-quarter cash dividend for its shareholders, which further boosted the stock’s appeal.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gasoline-powered trucks and SUVs, revealing plans to launch eight new or redesigned models across various sizes in North America. She also mentioned the ramp-up of production for the electric Chevrolet Equinox, emphasizing GM’s commitment to disciplined growth in the electric vehicle sector, despite earlier indications that the company would 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 Cruise, GM’s self-driving division, would discontinue its Origin vehicle, which had faced operational setbacks. Instead, Cruise will focus on the next-generation Chevrolet Bolt for its testing in Texas and Arizona. This strategic pivot is expected to address regulatory concerns regarding the Origin’s unique design and to reduce costs.
Barra reaffirmed GM’s commitment to transforming mobility through autonomous technology, stating that every mile and simulation brings the company closer to its goals. Additionally, GM is working on restructuring its joint venture with SAIC Motor in China, which has been incurring losses, including a $104 million loss in the second quarter. Production at SAIC-GM was significantly reduced in June, with only 26,000 vehicles delivered, marking a 50% decline from the previous year.