The badge of the Ford Motor Co. E-Transit electric car during a presentation in Washington, D.C., U.S.A on Wednesday, July 28, 2021.
DETROIT Ford Motor almost doubled Wall Street’s earnings expectations, and slightly exceeded revenue projections in the third quarter. This led the automaker's annual guidance to be increased for the second year.
Based on Refinitv's average analyst estimates, here's Ford's performance compared to Wall Street expectations.
Adjusted EPS: 51c per share adj. Expected: 27 cents per Share
51 cents per share adj. vs. 27cs per share expected Automotive revenue is $33.21 billion vs. 32.54 billion expected
Ford shares rose by approximately 5% in after-hours trades. On Wednesday, the stock was down 2.7% to $15.51 per share.
New full-year adjusted earnings guidance for Ford is $10.5 billion to $11.5 billion. This is an increase of $9 billion to $10 billion. Ford has maintained its expectations of an adjusted free cash flow between $4 billion to $5 billion.
The company raised its annual guidance, despite John Lawler, the company's CFO, saying that the second half would be worse than the first six months. While he had previously cited favorable sales volumes of $3 billion to $4Billion, he said that lower earnings from Ford Credit, commodity costs and other factors, such as higher warranty costs of $500 million, would have a negative impact on the company's results at the back end.