The badge of a Ford Motor Co. E-Transit electric vehicle during a presentation in Washington, DC, the United States, on Wednesday, July 28, 2021.
Al Drago | Bloomberg | Getty Images
DETROIT – Ford Motor announces its third quarter results after the market closed on Wednesday.
Here’s what Wall Street expects based on average analyst estimates compiled by Refinitiv.
- Adjusted EPS: 27 cents per share
- Automobile sales: $ 32.54 billion
In July, Ford raised its guidance for the year but warned investors that the second half of the year would be weaker than the first in terms of operating profit, which stood at $ 5.9 billion through June. At the time, the company said that adjusted earnings before taxes for the full year would be between $ 9 billion and $ 10 billion and adjusted free cash flow would be between $ 4 billion and $ 5 billion.
The company raised its guidance for the year after losing roughly half of its production in the second quarter due to a persistent global shortage of semiconductor chips. Ford’s delivery of parts should improve in the third quarter.
CFO John Lawler cited $ 3 billion to $ 4 billion in beneficial higher sales but said raw material costs, lower Ford Credit revenues, and other factors such as $ 500 million higher warranty costs detracted from year-end results.
Ford reported net income of $ 2.3 billion and adjusted pre-tax profit of $ 3.6 billion for the third quarter of 2020. At this point, dealerships and factories were largely reopened after closing in the second quarter due to the coronavirus pandemic. Automobile sales were $ 34.7 billion in the third quarter of 2020.
Ford stock is up about 80% this year. So aside from the third quarter results, investors will be looking for additional charges for the automaker over the next year.
Ford received a few bullish phone calls from Wall Street analysts for profit, including a Credit Suisse upgrade to outperformance from neutral.
Ford’s biggest American rival, General Motors, reported third-quarter earnings on Wednesday morning that exceeded Wall Street estimates. Despite the blows, GM stock fell more than 5% during intraday trading as the automaker lowered its free cash flow forecast for the year and failed to meet some investor expectations for the remainder of the year.