General Motors has raised several financial forecasts for 2024 after exceeding Wall Street expectations in its second quarter results.
The Detroit-based automaker now anticipates adjusted earnings for the year to range between $13 billion and $15 billion, an increase from its previous estimate of $12.5 billion to $14.5 billion. GM has also revised its targets for operating cash flow and earnings per share, while slightly lowering its net income forecast for shareholders to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, marking a more than 7% increase compared to the same period last year and surpassing the $45 billion anticipated by Wall Street, according to FactSet estimates. Earnings per share reached $3.06, exceeding analyst expectations of $2.71 and representing a 60% increase from 2023. Net income rose 14%, reaching $2.9 billion, up from $2.5 billion.
Following these results, GM’s stock rose almost 5% in pre-market trading on Tuesday and has increased more than 37% since the beginning of the year. The company declared a cash dividend for the third quarter, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gasoline-powered trucks and SUVs, mentioning the launch of eight new or redesigned compact, mid-size, and full-size models in North America. Barra emphasized that GM is increasing the production of the electric Chevrolet Equinox and remains committed to disciplined growth in electric vehicle production despite earlier comments that the goal of producing 1 million electric vehicles in North America by the end of 2025 may not be met due to market conditions.
Additionally, Barra announced changes to GM’s self-driving unit, Cruise, which will no longer use its unique Origin vehicle. Instead, Cruise will focus on testing next-generation Chevrolet Bolt vehicles in Texas and Arizona, a decision made after a $600 million charge related to halting Origin production in Detroit.
Barra explained that switching to the Bolt will address regulatory concerns about the Origin’s design, reduce costs, and optimize resources. She reaffirmed GM’s commitment to transforming mobility through autonomous technology, emphasizing that every mile and simulation brings the company closer to its goals.
GM is also working to restructure its joint venture with SAIC Motor in China, facing losses that included a $104 million deficit for the second quarter. Earlier in June, SAIC-GM significantly reduced production by 70%, delivering only 26,000 vehicles, which is 50% less than the previous year, according to industry reports.