General Motors (NYSE:) shares rose 5.45% following the announcement of its second-quarter results, which beat expectations in terms of both earnings and revenue.
The auto giant reported adjusted earnings per share of $3.06, significantly higher than the consensus estimate of $2.71. Revenue for the quarter also beat expectations, coming in at $47.97 billion versus the $45 billion forecast.
The company's strong performance has prompted an upward revision to its full-year 2024 earnings outlook. GM now projects an adjusted EPS range of $9.50 to $10.50, up from the previously forecast range of $9.00 to $10.00.
This updated guidance reflects GM's confidence in its operational execution and market strategy.
In a letter to shareholders, GM highlighted the company's strong second quarter and first half, attributing the success to a high-performing portfolio of internal combustion engine trucks and SUVs in North America, encouraging initial sales results from its electric vehicle portfolio and stable pricing with lower-than-industry-average incentives.
The company also highlighted its disciplined approach to volume growth and its commitment to achieving positive variable earnings from its electric vehicle portfolio for the fourth quarter.
The company's updated full-year guidance includes net income attributable to shareholders of $10.0 billion to $11.4 billion, an adjusted EBIT range of $13.0 billion to $15.0 billion and adjusted automotive free cash flow of $9.5 billion to $11.5 billion.
Capital spending is anticipated to be between $10.5 billion and $11.5 billion, including investments in battery cell manufacturing joint ventures.
GM’s positive outlook is further bolstered by strategic leadership appointments at Cruise, its autonomous vehicle subsidiary, and a shift in focus toward the next-generation Chevrolet Bolt, which is expected to streamline the path to scale and optimize resources.
Investors have reacted favorably to the news and GM's share price reflects their confidence in the company's strategic direction and financial health.
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