General Motors (GM) is set to announce its second-quarter earnings before the market opens on Tuesday, with investors eagerly awaiting the results following a strong sales performance in the gas-powered vehicles, trucks, and even electric vehicles (EVs) segment.

Analysts predict that GM will report revenue of $45.51 billion for the quarter, surpassing last quarter's $43 billion and a nearly 2% increase compared to the same period last year ($44.7 billion). In terms of profit, GM is projected to achieve $2.70 in adjusted earnings per share, translating to adjusted net income of $3.05 billion and operating profit of $3.83 billion.

The automaker's strong first-quarter results prompted GM to raise its guidance for the full year in April. The updated guidance expects full-year adjusted earnings before interest and taxes (EBIT) to range between $12.5 billion and $14.5 billion, up from the previous outlook of $12 billion to $14 billion. Adjusted earnings per share for 2024 are anticipated to be between $9 and $10.

A positive second-quarter report could lead GM to provide higher-end forecast guidance or potentially revise its full-year outlook upwards for the second time in 2021.

Although GM reduced its initial target of producing 400,000 EVs by 2024, CFO Paul Jacobson stated that the company expects to manufacture between 200,000 and 250,000 EVs this year, slightly below the earlier projection of 200,000 to 300,000 units. Despite the scaled-back plans, GM has seen significant market share gains in the EV sector, selling over 9,500 EVs in North America in May. Notably, the Chevrolet Blazer and Cadillac LYRIQ EVs demonstrated strong sales growth.

However, GM CEO Mary Barra recently acknowledged that the company's goal of producing 1 million EVs in North America by 2025 might be in jeopardy due to market developments. Barra emphasized that GM would be customer-driven in its approach.

Nevertheless, GM's second-quarter sales are expected to boost the company's profitability, with EV sales also showing strength. In the US, GM delivered 696,086 vehicles during the quarter, a 0.6% year-over-year increase, marking its best performance since the fourth quarter of 2020. The company's full-size pickups dominated the sales charts, and EV deliveries reached a record high.

In Q1, GM delivered 21,930 EVs, a 34% increase from the previous quarter and a 40% jump from the same period last year. Despite the revised EV plans, GM maintains its commitment to have 10 EV models available by the end of this year.

While GM's sales have exceeded expectations, some analysts express concerns about the execution risks associated with the ramping up production of several EV models featuring the Ultium platform. CFRA analyst Garrett Nelson, who holds a Hold rating on GM with a price target of $38, suggests that investor skepticism is justified given the challenges ahead.

GM's Q2 earnings report will provide crucial insights into the automaker's financial performance, with analysts closely monitoring guidance updates and the impact of strong sales, particularly in gas-powered vehicles and EVs.