DETROIT - General Motors Co. (NYSE: NYSE:GM) announced robust financial results for the second quarter of 2024, with revenue reaching $48.0 billion, a net income of $2.9 billion for stockholders, and an EBIT-adjusted figure of $4.4 billion. These figures mark a notable increase from the previous year's results.
The automotive giant also revised its full-year earnings guidance upwards for the second time this year, reflecting a positive business trajectory. The updated forecast for net income attributable to stockholders is now set between $10.0 billion and $11.4 billion, with an EBIT-adjusted range of $13.0 billion to $15.0 billion.
Additionally, the company anticipates automotive operating cash flow to be in the range of $19.2 billion to $22.2 billion and adjusted automotive free cash flow between $9.5 billion and $11.5 billion.
The revised earnings per share (EPS) are projected to be between $8.93 and $9.93 on a diluted basis and between $9.50 and $10.50 on an adjusted diluted basis. Capital spending for the year, including investments in battery cell manufacturing joint ventures, is expected to fall between $10.5 billion and $11.5 billion.
GM's Chair and CEO Mary Barra, alongside CFO Paul Jacobson, will discuss these results in a conference call with the investment community, aiming to provide further insights into the company's performance.
In comparison to the same quarter of the previous year, GM's revenue has increased by 7.2%, and its net income attributable to stockholders has risen by 14.3%. The EBIT-adjusted margin improved significantly, up by 29.2 percentage points.
Despite a decline in adjusted automotive free cash flow and a notable loss in China equity income, GM Financial's EBT-adjusted showed a 7.3% increase, contributing to the company's overall positive financial standing.
General Motors, known for its array of brands including Chevrolet, Buick, GMC, and Cadillac, is focused on an all-electric future with its Ultium battery platform at the core of its strategy. The company's commitment to an inclusive and accessible electric future is evident in its investments and product development efforts.
This report is based on a press release statement from General Motors and provides a factual overview of the company's financial outcomes for the second quarter of 2024.
In other recent news, General Motors (GM) is experiencing significant developments. RBC Capital has maintained an Outperform rating on GM, anticipating favorable second-quarter results. The automaker's management remains hopeful about their electric vehicle (EV) sales, aiming for 200,000 to 250,000 battery electric vehicles (BEVs) sales in 2024.
GM has recalibrated its goal to produce 1 million EVs by 2025, without setting a new target. The company has also committed at least $900 million to convert its Lansing, Michigan plant for EV production, which is expected to receive $500 million in government grants.
Recent developments include a plan by the Biden administration to provide nearly $1.1 billion in grants to GM and Stellantis (NYSE:STLA) for the conversion of existing plants for EV production.
Despite challenging market conditions, GM reported a 40% increase in U.S. EV sales in the second quarter. However, the company is facing a lawsuit from a group of 26 state attorneys general, challenging the new vehicle fuel economy regulations.
InvestingPro Insights
General Motors Co. (NYSE: GM) has shown a strong performance in the second quarter of 2024, with notable growth in revenue and net income. InvestingPro data highlights several key metrics that underline the company's financial health and market position. GM's Market Cap stands at a robust $56.52 billion, reflecting the size and stability of the company within the industry. The company also boasts an attractive P/E Ratio of 6.08, with an adjusted P/E Ratio for the last twelve months as of Q1 2024 at an even lower 5.29, suggesting that the stock may be undervalued relative to its earnings. Additionally, the Revenue Growth for the same period was 8.79%, indicating a healthy upward trajectory in GM's financial performance.
Investors may find the InvestingPro Tips particularly insightful. GM's management has been actively engaged in share buybacks, signaling confidence in the company's future prospects. Furthermore, the fact that 7 analysts have revised their earnings upwards for the upcoming period could be indicative of continued positive momentum for GM. With a strong presence as a prominent player in the Automobiles industry, the company's strategic moves and financial results are closely watched by investors seeking growth and stability.
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