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Ford (F) earnings Q3 2021

The badge of a Ford Motor Co. E-Transit electrical automobile throughout a presentation in Washington, D.C., U.S., on Wednesday, July 28, 2021.

Al Drago | Bloomberg | Getty Photos

DETROIT – Ford Motor reported earnings after the bell. Listed below are the outcomes.

  • Adjusted EPS: 51 cents per share adj. vs. 27 cents per share anticipated, in keeping with Refinitiv
  • Automotive income: $33.21 billion vs. $32.54 billion anticipated, in keeping with Refinitiv

In July, Ford raised its steerage for the 12 months, however warned traders the second half of the 12 months could be weaker than the primary regarding its operating profit, which was at $5.9 billion via June. At the moment, the corporate mentioned full-year adjusted earnings earlier than taxes could be between $9 billion and $10 billion and adjusted free money stream of between $4 billion and $5 billion.

The corporate elevated annual steerage regardless of dropping roughly half of its production within the second quarter as a consequence of an ongoing world scarcity of semiconductor chips. Ford’s provide of the components was anticipated to enhance in the course of the third-quarter.

CFO John Lawler cited $3 billion to $4 billion in favorable increased gross sales volumes, however mentioned commodity prices, decrease earnings from Ford Credit score and different components similar to $500 million in increased guarantee prices to tug down its outcomes in the course of the again finish of the 12 months.

Ford reported a web revenue of $2.3 billion and an adjusted pretax acquire of $3.6 billion during the third quarter of 2020. That was when dealerships and vegetation largely reopened after being shuttered in the course of the second-quarter because of the coronavirus pandemic. Its automotive income was $34.7 billion within the third quarter of 2020.

Ford’s inventory is up by about 80% this 12 months, so except for third-quarter earnings, traders shall be expecting any extra drag on the automaker heading into subsequent 12 months.

Ford acquired a pair bullish calls from Wall Avenue analysts heading into earnings, together with an improve by Credit score Suisse to outperform from neutral.

Ford’s largest American rival, General Motors, reported third-quarter earnings Wednesday morning that beat Wall Avenue’s estimates. Regardless of the beats, GM’s inventory declined by greater than 5% throughout intraday buying and selling because of the automaker lowering free cash flow guidance for the 12 months and never assembly some investor expectations for the rest of the 12 months.

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