General Motors shares rally after earnings and revenue beat, raises full-year outlook By Investing.com

General Motors (NYSE:GM) shares rose 5.45% after reporting second-quarter results that beat expectations on both earnings and revenue.

The auto giant reported adjusted earnings per share of $3.06, well above the consensus estimate of $2.71. Revenue for the quarter also topped expectations, coming in at $47.97 billion versus the $45 billion expected.

The company’s strong performance prompted an upward revision of its full-year 2024 earnings guidance. GM now expects an adjusted earnings per share range of $9.50 to $10.50, up from the previously expected 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 performance in the second quarter and first half, attributing the success to a high-performance portfolio of internal combustion engine trucks and SUVs in North America, encouraging early sales results from its electric vehicle portfolio, and stable pricing with incentives below the industry average.

The company also emphasized its disciplined approach to volume growth and its commitment to achieving positive variable earnings from the EV portfolio by the fourth quarter.

The company’s updated full-year guidance includes net income attributable to shareholders in the range of $10.0 billion to $11.4 billion, adjusted EBITDA in the range of $13.0 billion to $15.0 billion, and adjusted automotive free cash flow in the range of $9.5 billion to $11.5 billion.

Capital spending is expected to be between $10.5 billion and $11.5 billion, including investments in joint ventures to manufacture battery cells.

GM’s positive outlook is bolstered by strategic leadership appointments at Cruise, its self-driving subsidiary, and a shift in focus to the next-generation Chevrolet Bolt, which is expected to streamline the path to resource scaling and optimization.

Investors reacted positively to the news, as GM’s stock price reflects their confidence in the company’s strategic direction and financial health.