General Motors (NYSE:) reported better-than-expected Q1 adjusted EPS and raised its adjusted FY EPS forecast, driving its shares up 2% in premarket trading.

Automaker Q1 adjusted earnings were $2.09, which is lower than the consensus estimate of $2.25 for the previous year and higher than analyst expectations of 1.68.

The net sales and revenue were $35.98 Billion, which was below the consensus estimate of $37.31 Billion.

Revenue and net sales for cruises were $26 millions, which is the same as expected at $26.1million. The estimated revenue and net sales for automotive were $32.82 billion.

GM reported that it sold 831,000 units during the quarter.

Future projections show that the automaker will expect FY 2022 net income between $9.6 billion and $11.2 billion. The company also reiterated its outlook for full-year adjusted EBIT at $13 billion to 15 billion.

John Murphy, a BofA analyst says that favorable mix and price drew better results than expected.

“We are encouraged by the strong execution in the quarter despite ongoing macroeconomic pressure, and are largely maintaining our forward estimates and PO [of $95],” Murphy said in a client note.

Wedbush analyst Daniel Ives lowered the price target to $50.00 from $85.00 as results showed supply chain issues are “the black cloud” over GM. He added that results were “better than feared but clearly nothing to write home about.”

“Our bullish thesis for GM is predicated on the Detroit stalwart’s ability to convert 20% of its installed base by 2025 and 50%+ to EVs by 2030 which will result in a metamorphosis of its valuation in the eyes of the Street. The EV strategy has been moving well, as evidenced by its huge investment profile and continued rise in the EV arms race. Cross-town rival Ford is also trying to get into the EV spotlight. That said, we view this transition period as noisy but see the forest through the trees on an EV transformation thesis,” Ives said in a note.

By Senad Karaahmetovic