Ford Motor Co. CEO Jim Farley walks to speak at a news conference at the Rouge Complex in Dearborn, Michigan, September 17, 2020.
Rebecca Cook | Reuters
DETROIT – Ford Motor raised its earnings guidance for the year after reporting a surprise profit, saying it’s selling more cars that are more expensive.
Its revenue slightly missed expectations due to the ongoing global shortage of semiconductor chips.
Here’s how Ford did compared with what Wall Street expected based on average estimates compiled by Refinitiv.
- Adjusted results: 13 cents per share, adjusted vs a loss of 3 cents a share
- Automotive revenue: $24.13 billion vs $24.25 billion
Ford raised its expectation for full-year adjusted earnings before taxes by about $3.5 billion, to between $9 billion and $10 billion. Volume is expected to increase by about 30% from the first to the second half of the year, driven by an improvement in market factors, according to the company.
Ford last month said its adjusted pretax earnings for the second quarter would top its expectations and be “significantly better than a year earlier,” while net income would be “substantially lower” than the same period last year.
The company reported a net profit of $1.1 billion and an adjusted pretax loss of $1.9 billion during the second quarter of 2020.
In April, Ford forecasted its adjusted pretax profit for the year to range from $5.5 billion to $6.5 billion, including an adverse effect of about $2.5 billion from the semiconductor shortage. That impact was the high end of a previously guided loss due to the problem.
Outside of Ford’s earnings and any change to guidance, Wall Street analysts will be looking for updates on CEO Jim Farley’s Ford+ turnaround plan, the semiconductor chip shortage and new product launches.
Shares of Ford have more than doubled since Jim Farley became CEO in October, including a more than 50% jump so far this year.