General Motors is updating its financial forecasts for 2024 after exceeding Wall Street’s expectations in the second quarter. The Detroit-based automaker raised its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion, while also increasing targets for operating cash flow and earnings per share. However, expectations for net income attributable to shareholders were adjusted down slightly, to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, representing over a 7% increase from the previous year, and surpassing the Wall Street expectation of $45 billion. Earnings per share reached $3.06, exceeding analysts’ predictions of $2.71, and showing a 60% growth from 2023. Net income rose 14% to $2.9 billion, compared to $2.5 billion a year earlier.
Following these announcements, GM’s stock rose nearly 5% in pre-market trading and has gained over 37% this year. The company declared a third-quarter cash dividend after the market closed on Monday, contributing to the stock’s upward momentum.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs and mentioned plans to launch eight new or redesigned models in North America. Barra noted the company is scaling production of the electric Chevrolet Equinox while maintaining a commitment to disciplined growth in EV production.
Earlier this month, Barra acknowledged that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown, stating that the company would adapt by building according to demand, despite an increase in EV sales last quarter.
Additionally, Barra announced that Cruise, GM’s self-driving division, would abandon its Origin vehicle, focusing instead on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM recorded a $600 million charge related to the production halt of the Origin.
During a call with analysts, Barra mentioned that using the Bolt would address regulatory concerns regarding the Origin’s unusual design, which lacks a steering wheel. This change is also expected to reduce costs and improve resource management for GM.
The automaker is also working on restructuring its joint venture with SAIC Motor in China, facing continued losses, which included a $104 million loss in the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering 26,000 vehicles, a decrease of 50% compared to the previous year, according to reports.