General Motors (GM) has exceeded expectations with its second quarter earnings, leading to an increased full-year guidance for the second consecutive quarter. The Detroit-based automaker credited its robust sales in gas-powered vehicles, trucks, and even electric vehicles (EVs) for its impressive performance.

GM reported record revenue of $47.97 billion for the quarter, representing a 7.2% increase compared to the previous year. This exceeded estimates of $45.51 billion (Bloomberg consensus). Adjusted earnings per share (EPS) of $3.06 also surpassed estimates of $2.70. Additionally, GM reported adjusted earnings before interest and taxes (EBIT) of $4.438 billion, comfortably surpassing estimates of $3.88 billion.

The company's positive performance prompted GM to revise its full-year 2024 forecast. The revised guidance is a result of the popularity of GM vehicles and the ongoing success of its internal combustion engine (ICE) portfolio. In her shareholder letter, GM CEO Mary Barra expressed gratitude to the GM team, dealers, suppliers, and business partners for their contribution to the company's strong quarterly and half-year results. Barra emphasized that the increased guidance reflects the company's commitment to delivering improved earnings, free cash flow, and earnings per share.

GM's CFO, Paul Jacobson, highlighted the generation of significant free cash flow and the underlying performance of the business as contributing factors to the improved outlook. The company's confidence in its ICE portfolio has led to a $6 billion share buyback plan authorized in June.

Regarding its electric vehicle strategy, GM reiterated its target of producing between 200,000 and 250,000 EVs this year. This is slightly lower than the initial plan of 200,000 to 300,000 units due to the evolving market conditions. Despite the adjustment, GM remains committed to its goal of reaching certain profitability metrics by the end of the year. The company plans to have 10 EV models available in the market by the year-end.

In terms of sales, GM's second quarter numbers have positively impacted the company's financial position. The automaker delivered 696,086 vehicles in the US, a 0.6% increase compared to the previous year, with full-size pickups leading the sales charts. EV sales also experienced growth, reaching a record high. GM reported delivering 21,930 EVs in the first quarter, a 34% increase compared to the previous quarter and a 40% jump year-over-year.

GM's Cruise autonomous driving unit is also resuming testing after pausing last year due to accidents. The unit is expanding to new cities and shifting all of its vehicles to GM's Chevrolet Bolt EV platform, which will help address regulatory uncertainty and reduce per-unit costs going forward. The company will incur a one-time charge of $600 million for indefinitely suspending development of the Origin autonomous vehicle.

GM's second quarter performance has fueled a 3.5% increase in pre-market trading, and it marks the second time this year that the company has raised its full-year profit outlook. With strong sales and an optimistic outlook, GM continues to demonstrate its resilience and adaptability in an evolving automotive landscape.