General Motors has announced an increase in several financial projections for 2024 after exceeding analysts’ expectations in its recent second-quarter report. The Detroit-based automaker raised 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 adjusted its targets for operating cash flow and earnings per share. However, the net income forecast attributable to shareholders was slightly revised down by less than 1%, now anticipated between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, representing an increase of over 7% compared to the same period last year and surpassing Wall Street’s expectation of $45 billion, as per FactSet estimates. Earnings per share were reported at $3.06, exceeding the analyst forecast of $2.71 and marking a 60% increase from 2023. The company’s net income rose by 14%, reaching $2.9 billion, up from $2.5 billion.
Following this positive news, GM’s stock increased nearly 5% in pre-market trading on Tuesday, with its shares having risen more than 37% this year. On Monday, GM announced a cash dividend for the third quarter, further boosting its stock performance.
In her letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs, and mentioned that the company is set to launch eight new or redesigned models in North America across various vehicle categories. Barra emphasized GM’s commitment to scaling production of the electric Chevrolet Equinox, noting the company’s dedication to disciplined growth in electric vehicle (EV) volume.
Earlier this month, Barra acknowledged that GM will not reach its target of producing 1 million electric vehicles in North America by the end of 2025, citing a slowdown in the market. The company has indicated a flexible approach to production, aligning output with consumer demand, even as EV sales increased in the last quarter.
Additionally, Barra announced that Cruise, GM’s autonomous driving division, would discontinue its Origin vehicle model after scaling back operations due to a previous incident last October. Instead, Cruise will concentrate on using the next-generation Chevrolet Bolt for testing its vehicles in Texas and Arizona. GM accounted for a $600 million charge associated with the pause in Origin production in Detroit.
During a call with analysts, Barra stated that utilizing the Bolt would address regulatory concerns regarding the unique design of the Origin, which lacked a steering wheel. This change is also expected to reduce costs and optimize resources.
Barra reinforced GM’s commitment to transforming mobility with autonomous technology, asserting that every mile traveled and simulation brings the company closer to that vision. Furthermore, GM is in the process of restructuring its joint venture in China with SAIC Motor, as it navigates ongoing financial losses, which included a $104 million loss for the second quarter. In June, SAIC-GM significantly reduced production by 70%, resulting in the delivery of only 26,000 vehicles, a drop of 50% compared to the previous year, according to Automotive News.