GM far exceeds second-quarter estimates, will restructure struggling China unit
General Motors is raising several key financial targets for 2024 after easily beating Wall Street’s earnings expectations for the second quarter, while it restructures money-losing operations such as autonomous vehicles and its China business.
The Detroit automaker now expects full-year adjusted earnings before interest and taxes of between $13 billion and $15 billion, or $9.50 and $10.50, up from previous guidance of $12.5 billion to $14.5 billion, or $9 and $10, previously. It also raised its adjusted automotive free cash flow forecast, while slightly lowering the range for its net income attributable to stockholders by less than 1%.
Here’s how the company performed in the second quarter, compared with average estimates compiled by LSEG:
Earnings per share: $3.06 adjusted vs. $2.75 expected Revenue: $47.97 billion vs. $45.46 billion expected Shares of GM were up about 4% during pre-market trading. The stock is up roughly 38% in 2024.
GM’s second-quarter results included net income attributable to stockholders, which excludes some dividend payouts, of $2.93 billion, up 14.3% from $2.57 billion a year earlier. On a per-share basis, GM reported earnings of $2.55, up from $1.83 a year earlier. Adjusted earnings before interest and taxes came in at $4.44 billion, up 37.2%, and adjusted earnings per share were $3.06.
Its unadjusted net income was $2.88 billion, up 14.8% from a year earlier. GM said its revenue for the second quarter was a new quarterly record for the automaker, up 7.2% compared to $44.75 billion a year earlier.
“It was truly a great first half and second quarter, and we’re positioned to have a very strong year,” GM CFO Paul Jacobson said during a media briefing. “We expect to see some seasonally higher commodity costs, as well as some pricing headwinds that we’ve assumed in the second half of the year.”
Alongside the strong earnings, GM on Tuesday said it is indefinitely pausing production of its Cruise Origin autonomous vehicle, triggering a $600 million special charge in the second quarter. It also said it’s attempting to restructure a joint venture in China with SAIC amid continuing losses, including a $104 million loss in equity income during the second quarter.
The Detroit automaker now expects full-year adjusted earnings before interest and taxes of between $13 billion and $15 billion, or $9.50 and $10.50, up from previous guidance of $12.5 billion to $14.5 billion, or $9 and $10, previously. It also raised its adjusted automotive free cash flow forecast, while slightly lowering the range for its net income attributable to stockholders by less than 1%.
Here’s how the company performed in the second quarter, compared with average estimates compiled by LSEG:
Earnings per share: $3.06 adjusted vs. $2.75 expected Revenue: $47.97 billion vs. $45.46 billion expected Shares of GM were up about 4% during pre-market trading. The stock is up roughly 38% in 2024.
GM’s second-quarter results included net income attributable to stockholders, which excludes some dividend payouts, of $2.93 billion, up 14.3% from $2.57 billion a year earlier. On a per-share basis, GM reported earnings of $2.55, up from $1.83 a year earlier. Adjusted earnings before interest and taxes came in at $4.44 billion, up 37.2%, and adjusted earnings per share were $3.06.
Its unadjusted net income was $2.88 billion, up 14.8% from a year earlier. GM said its revenue for the second quarter was a new quarterly record for the automaker, up 7.2% compared to $44.75 billion a year earlier.
“It was truly a great first half and second quarter, and we’re positioned to have a very strong year,” GM CFO Paul Jacobson said during a media briefing. “We expect to see some seasonally higher commodity costs, as well as some pricing headwinds that we’ve assumed in the second half of the year.”
Alongside the strong earnings, GM on Tuesday said it is indefinitely pausing production of its Cruise Origin autonomous vehicle, triggering a $600 million special charge in the second quarter. It also said it’s attempting to restructure a joint venture in China with SAIC amid continuing losses, including a $104 million loss in equity income during the second quarter.
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