General Motors has announced an increase in its financial forecasts for 2024 following a strong performance that surpassed Wall Street’s predictions for the second quarter. The Detroit-based automaker has revised its expected adjusted earnings for the year to between $13 billion and $15 billion, up from prior estimates of $12.5 billion to $14.5 billion. Additionally, GM has raised its targets for operating cash flow and earnings per share, while slightly lowering the expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported a revenue of $47.9 billion, marking a year-over-year increase of over 7% and exceeding Wall Street’s projection of $45 billion, according to FactSet. Earnings per share reached $3.06, surpassing the analysts’ expectation of $2.71 and demonstrating a 60% increase compared to 2023. Net income also rose by 14%, climbing to $2.9 billion from $2.5 billion.
Following the announcement, GM’s stock experienced a nearly 5% increase in pre-market trading, reflecting a gain of over 37% for the year. The automaker declared a cash dividend for the third quarter after the market closed on Monday, contributing to the stock’s upward momentum.
In a letter to shareholders, CEO Mary Barra highlighted the success of the company’s gas-powered trucks and SUVs and mentioned that GM is working on launching eight new or redesigned vehicle models in North America. Barra also emphasized the scaling of production for the electric Chevrolet Equinox, stating that while the company is enthusiastic about its electric vehicles, it remains committed to disciplined growth.
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, though EV sales did see growth last quarter.
Cruise, GM’s self-driving division, is shifting its focus from the discontinued Origin vehicle to using the next-generation Chevrolet Bolt for testing in Texas and Arizona. This change follows a production halt of the Origin and a $600 million charge related to that decision. During a conference call with analysts, Barra indicated that using the Bolt would address regulatory concerns related to the Origin’s unique design, while also reducing costs and optimizing resources.
Barra affirmed that GM’s objective to innovate mobility with autonomous technology remains steadfast, noting that every simulation and mile traveled brings the company closer to its goals. Additionally, GM is in the process of restructuring its joint venture in China with SAIC Motor, as it continues to face financial challenges, reporting a $104 million loss in the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering 26,000 vehicles—50% fewer than the previous year.