General Motors has announced increased financial projections for 2024 following a strong second quarter performance that exceeded Wall Street expectations. The Detroit-based automaker has adjusted its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, a rise from the previous estimate of $12.5 billion to $14.5 billion. The company also improved 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 terms of revenue, GM reported $47.9 billion for the second quarter, reflecting more than a 7% increase from the previous year and surpassing the $45 billion forecast by analysts. Earnings per share reached $3.06, which is higher than the anticipated $2.71 and marks a 60% increase compared to the same period in 2023. Net income for the quarter was $2.9 billion, representing a 14% growth from $2.5 billion.
Following the announcement, GM’s stock rose nearly 5% in pre-market trading and has seen more than a 37% increase in value this year. The company also declared a third-quarter cash dividend after market close on Monday, further boosting investor confidence.
In her letter to shareholders, CEO Mary Barra highlighted the successful sales of GM’s gas-powered trucks and SUVs and noted the upcoming launch of eight new or redesigned models in North America. She emphasized that GM is ramping up production of the electric Chevrolet Equinox and remains dedicated to disciplined volume growth, despite a previous statement that the company would not achieve its target of producing 1 million electric vehicles in North America by the end of 2025 due to market slowdowns.
Barra also addressed the self-driving unit, Cruise, which has suspended its Origin vehicle initiative following operational setbacks. Instead, Cruise will utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision comes after GM incurred a $600 million charge associated with the halted production of the Origin.
During an analyst call, Barra expressed confidence in their vision to transform transportation through autonomous technology and stated that every effort, including simulations, brings them closer to their goals.
Lastly, GM is working to optimize its joint venture in China with SAIC Motor due to ongoing financial losses, with the company reporting a $104 million loss in the second quarter. In June, SAIC-GM cut production by 70% and delivered 26,000 vehicles, which is a 50% decline compared to the previous year.