Ford Motor Co. electric car badge. E-Transit during its presentation in Washington DC, USA, Wednesday, July 28, 2021.
Al Drago | Bloomberg | Getty Images
DETROIT – Ford Motor nearly doubled Wall Street’s earnings expectations and slightly beat its third-quarter earnings forecasts, prompting the automaker to raise its annual forecast for the second time this year.
Here are Ford’s results compared to Wall Street’s expectations based on analyst average estimates compiled by Refinitv.
- Adjusted earnings per share: 51 cents per share app. vs. expected 27 cents per share
- Automotive revenue: $ 33.21 billion vs. expected $ 32.54 billion
Ford shares jumped about 5% during overtime trading. At the close on Wednesday, shares were down 2.7% to $ 15.51 a share.
In July, Ford raised its forecast for the year, but warned investors that the second half of the year will be weaker than the first in terms of its operating profit, which stood at $ 5.9 billion until June. At the time, the company said adjusted pre-tax profit for the year would be $ 9 billion to $ 10 billion and adjusted free cash flow would be $ 4 billion to $ 5 billion.
The company raised its annual forecast despite losing roughly half of its production in the second quarter due to the continued shortage of semiconductor chips in the world. Ford parts shipments are expected to increase in the third quarter.
CFO John Lawler cited $ 3 billion to $ 4 billion as favorable higher sales, but said raw material costs, lower revenues from Ford Credit and other factors such as more than $ 500 million in higher warranty costs would bring it down. results at the end of the year.
Ford reported net income of $ 2.3 billion and adjusted pre-tax profit of $ 3.6 billion during the third quarter of 2020. It was then that dealerships and factories largely reopened after closing in the second quarter due to the coronavirus pandemic. The company generated revenues from the automotive industry in the third quarter of 2020 of $ 34.7 billion.
Ford shares are up roughly 80% this year, so in addition to third-quarter earnings, investors will be watching for any additional brake on the automaker next year.
Ford received several upbeat calls from Wall Street analysts on earnings, including raising Credit Suisse’s rating from neutral to outperform.
Ford’s largest US rival, General Motors, reported third-quarter earnings Wednesday morning that beat Wall Street’s forecasts. Regardless, GM shares fell more than 5% during intraday trading as the automaker cut its full-year free cash flow forecast and fell short of some investor expectations for the rest of the year.