This week, automakers will report their earnings, with GM expected to shine.

• This week, Wall Street anticipates that General Motors will outperform the other traditional Detroit automakers in terms of their second-quarter financial results.
• If not raise them, some analysts anticipate that both GM and Ford will exceed their 2024 financial projections' upper bounds.
• Stellantis, the parent company of Chrysler, faces unique challenges in North America compared to its competitors.

Wall Street anticipates that will outperform the other traditional Detroit automakers when they release their second-quarter results, as they maintained stable sales and vehicle prices during the first half of the year.

According to LSEG, analysts predict that GM will report a substantial adjusted profit of $2.75 per share, representing a 44.2% increase from the previous year, and $45.46 billion in revenue, which is a 1.6% increase from the prior-year period.

LSEG estimates Ford's adjusted earnings per share for the second quarter of 2023 to be 68 cents, a 5.2% decrease from the same quarter in 2023. Ford's automotive revenue is expected to increase by 3.8% to $44.02 billion compared to the previous year, according to LSEG.

On Tuesday, GM will release its earnings before the markets open, while Ford will report its earnings in the afternoon after markets close on Wednesday. Chrysler parent will follow suit and release its first-half earnings results on Thursday morning.

Wall Street analysts anticipate that General Motors (GM) may increase its 2024 guidance range during its second-quarter results, with some experts predicting it will guide toward the higher end of the range. However, there is less agreement among analysts about the outlooks for Stellantis and Ford.

"According to Barclays analyst Dan Levy, in a July 15 investor note, both Ford and GM are predicted to post strong 2Q beats due to favorable pricing. While Ford will benefit from increased volume and mix, GM will benefit from easy comps on cost. Additionally, both companies are expected to raise their 2024 guidance."

Evercore analyst Chris McNally maintains a positive outlook on General Motors, particularly compared to Ford, due to its lower pricing. Despite this, Evercore still anticipates a solid second quarter for Ford, with expectations trending toward the upper half of its previously announced 2024 guidance.

Ford's EBIT for the year is expected to range from $10 billion to $12 billion, with free cash flow of $6.5 billion to $7.5 billion.

The GM's 2024 guidance is projected to be between $12.5 billion and $14.5 billion in adjusted earnings, which translates to $9 to $10 per share. Additionally, the company anticipates an adjusted automotive free cash flow range of $8.5 billion to $10.5 billion.

Citi analyst Itay Michaeli predicts that both companies will report strong quarters, either with self-assured affirmations of their earlier projections (i.e., higher end of the range) or slight upward revisions.

Unlike its competitors, Stellantis has significant operations in both North America and Europe.

The North American operations of the transatlantic automaker are a concern for investors, despite expectations of an adjusted operating profit for the first half of the year.

During an investor event last month, CEO Carlos Tavares described the company's mistakes in the region as "arrogant," which led to sales declines, bloated inventories, and investor concerns.

Although there are issues, Stellantis finance chief Natalie Knight stated during the June conference that the company's adjusted operating income margin would be between 10% and 11% for the first half of the year.

Stellantis' 2024 guidance was reconfirmed by her, which includes a double-digit adjusted operating income margin, positive industrial free cash flow, and at least 7.7 billion euros ($8.4 billion) in capital return to investors in the forms of dividends and buybacks.

In contrast to shares of GM and Ford, which have increased by 36% and 18% respectively, shares of Stellantis have decreased by more than 12% in 2024.

Stellantis is facing three challenges: slow sales of vehicles, manufacturing problems at two unspecified plants, and a lack of marketing sophistication.

LSEG predicts that Stellantis, the owner of Jeep and Ram in the U.S., will experience a 11.3% year-over-year decline in revenue, amounting to 45.37 billion euros ($49.39 billion).

Despite a projected decline of 18.9% in adjusted earnings per share to $4.82 in 2024, analysts still expect Stellantis to be profitable.

Investors will closely monitor updates on electric vehicle plans, capital spending, and rising new vehicle inventory levels in the U.S. for General Motors, Ford, and Stellantis.

"Barclays' Levy stated that the U.S. auto cycle dynamics can continue to support strong earnings streams for automakers, with healthy pricing dynamics maintained even in the face of normalization. However, inventory levels have increased, which requires monitoring. Incrementally negative datapoints may negatively impact automaker stocks."

— CNBC's Michael Bloom contributed to this report.