General Motors is revising its financial outlook for 2024 upwards after exceeding Wall Street estimates for its second quarter results. The automaker has increased its projected adjusted earnings for the year, now estimating between $13 billion and $15 billion, up from a previous range of $12.5 billion to $14.5 billion. GM has also raised its targets for operating cash flow and earnings per share, but slightly lowered its expected net income attributable to shareholders to a range of $10 billion to $11.4 billion.
In terms of revenue, GM reported $47.9 billion for the second quarter, representing a more than 7% increase from the previous year and surpassing the expected $45 billion from Wall Street, according to FactSet estimates. The earnings per share stood at $3.06, exceeding analysts’ expectations of $2.71 and marking a 60% improvement compared to the same period last year. Net income rose 14%, reaching $2.9 billion, up from $2.5 billion.
Following these announcements, GM’s stock surged nearly 5% in pre-market trading on Tuesday and has seen an overall rise of over 37% this year. Additionally, GM declared a third-quarter cash dividend after trading closed on Monday, contributing to the stock’s positive momentum.
In her letter to shareholders, CEO Mary Barra highlighted the success of the company’s gasoline-powered trucks and SUVs, while announcing plans to launch eight new or redesigned models in North America across various sizes. She also discussed ramping up production of the electric Chevrolet Equinox, emphasizing a commitment to measured growth in electric vehicle (EV) production despite earlier setbacks in reaching the goal of 1 million EVs in North America by the end of 2025.
Barra mentioned that GM has adjusted its strategy for its self-driving unit, Cruise, which had to revise its operations after issues arose last October. The company will abandon its Origin vehicle for now and instead utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM faced a $600 million charge linked to the suspension of Origin production in Detroit.
During a call with analysts, Barra expressed confidence in Cruise’s vision to revolutionize mobility with autonomous technology, stating that each simulation and mile traveled brings the company closer to its goals. She also commented on GM’s ongoing efforts to restructure its joint venture in China with SAIC Motor, which has been facing losses, including a $104 million loss reported for the second quarter. This follows a significant production cut by SAIC-GM in June, reducing output by 70% and delivering just 26,000 vehicles—50% less than the previous year, as noted by Automotive News.