General Motors announced an increase in several financial projections for 2024 following a strong performance in the second quarter that exceeded Wall Street predictions. The automaker has raised its forecast for adjusted earnings to a range of $13 billion to $15 billion, an increase from the earlier estimate of $12.5 billion to $14.5 billion. Additionally, GM has adjusted its expectations for operating cash flow and earnings per share, while slightly lowering the forecast for net income attributable to shareholders to between $10 billion and $11.4 billion.
The company’s revenue for the second quarter reached $47.9 billion, marking over a 7% increase from the previous year and surpassing Wall Street’s expectation of $45 billion, according to FactSet estimates. The earnings per share stood at $3.06, exceeding the analyst prediction of $2.71 and reflecting a 60% increase compared to 2023. Net income rose 14% to $2.9 billion, up from $2.5 billion.
In pre-market trading on Tuesday, GM’s stock rose nearly 5%. So far this year, the stock has gained more than 37%. Following the market close on Monday, GM announced a cash dividend for the third quarter, contributing to the stock’s positive movement.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gasoline-powered trucks and SUVs, and announced plans to introduce eight new or redesigned models in North America, covering compact, mid-size, and full-size segments. Barra confirmed GM’s commitment to scaling up production of the electric Chevrolet Equinox and emphasized disciplined volume growth, despite recent comments that the company would not meet its goal of producing 1 million electric vehicles by 2025 due to market slowdowns.
Barra also disclosed changes within GM’s self-driving division, Cruise, which will abandon its Origin vehicle project. Moving forward, Cruise will test next-generation Chevrolet Bolt vehicles in Texas and Arizona, following a $600 million charge associated with halting Origin production in Detroit. Barra stated that transitioning to the Bolt would address regulatory concerns related to the Origin’s design and would help reduce costs while optimizing resources.
Additionally, GM is working to restructure its joint venture with SAIC Motor in China due to ongoing losses, as the company reported a loss of $104 million for the second quarter. In June, SAIC-GM significantly cut production by 70%, delivering only 26,000 vehicles, which is a 50% decline compared to the same period last year.