General Motors has adjusted its financial projections for 2024 following a strong performance in the second quarter, exceeding Wall Street estimates. The company has raised its expected adjusted earnings for the year to a range of $13 billion to $15 billion, up from $12.5 billion to $14.5 billion. It also increased 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, marking an over 7% increase compared to the same period last year and surpassing the $45 billion forecast by analysts. Earnings per share were reported at $3.06, exceeding the expected $2.71 and representing a 60% increase from 2023. Additionally, net income rose 14% to $2.9 billion, up from $2.5 billion.
Following these results, GM’s stock surged nearly 5% in pre-market trading on Tuesday, contributing to a 37% increase in stock value so far this year. The automaker also announced a cash dividend for the third quarter, further buoying investor sentiment.
In a letter to shareholders, CEO Mary Barra highlighted the strong sales of gas-powered trucks and SUVs, noting that the company is preparing to launch eight new or redesigned vehicle models in North America. She emphasized GM’s commitment to disciplined growth in its electric vehicle (EV) production, although she noted that the company is unlikely to meet its target of producing 1 million EVs in North America by the end of 2025 due to a slowdown in the market. Nevertheless, EV sales saw growth in the last quarter.
Barra also shared updates regarding Cruise, GM’s autonomous vehicle unit, which has scaled back operations after past incidents. The company will now focus on using the next-generation Chevrolet Bolt for testing in Texas and Arizona, instead of the previously planned Origin vehicle, allowing GM to reduce costs and address regulatory concerns.
Additionally, GM is working on restructuring its joint venture in China with SAIC Motor, which has been experiencing losses. The company reported a $104 million loss for the second quarter, with significant production cuts made by SAIC-GM, resulting in a 70% decrease in output compared to the previous year.