General Motors has raised several financial projections for 2024 after exceeding Wall Street’s expectations for its second quarter. The automaker has increased its forecasted adjusted earnings to between $13 billion and $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion, and has also adjusted targets for operating cash flow and earnings per share. Meanwhile, expectations for net income attributable to shareholders were lowered by less than 1% to between $10 billion and $11.4 billion.
In its second quarter, GM reported revenue of $47.9 billion, which is a more than 7% increase from the previous year and surpassed the $45 billion forecast set by Wall Street analysts. Earnings per share rose to $3.06, exceeding the anticipated $2.71 and representing a 60% increase compared to 2023. Net income increased by 14% to $2.9 billion, up from $2.5 billion.
Following the announcement, GM’s stock surged nearly 5% in pre-market trading on Tuesday, having climbed over 37% this year. The company declared a third-quarter cash dividend after trading closed on Monday, contributing to the stock’s growth.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs while announcing plans to launch eight new or redesigned models across different segments in North America. She also mentioned that GM is ramping up production of the electric Chevrolet Equinox, emphasizing a commitment to disciplined growth in the electric vehicle (EV) sector, despite acknowledging a slowdown in the market that may prevent the company from achieving its goal of producing 1 million EVs in North America by the end of 2025.
Additionally, Barra shared that Cruise, GM’s self-driving subsidiary, will discontinue its Origin vehicle and instead use the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision comes after a halt in production of the Origin, leading to a $600 million charge for GM. Barra explained that the Bolt will address regulatory concerns linked to the Origin’s unique design and reduce production costs.
Finally, GM is seeking to restructure its joint venture with SAIC Motor in China, where the company reported a loss of $104 million for the second quarter. Production was cut by 70% at SAIC-GM in June, with only 26,000 vehicles delivered, marking a 50% decline from the previous year, according to reports.