HomeIndustriesFord Beats Q2 Profit Estimates Amid EV Unit Slump

Ford Beats Q2 Profit Estimates Amid EV Unit Slump

Ford stock rose on Friday morning after the Detroit-based automaker released stronger-than-expected earnings results for the second quarter. The company raised its full-year profit outlook as a result.

Top-line revenue for Q2 was $45 billion, outpacing an expected $40.17 billion and improving 12% from the $37.91 billion reported a year earlier. Adjusted earnings per share amounted to $0.72, beating the Wall Street consensus estimate of $0.54 per share. Adjusted EBIT amounted to $3.8 billion.

In terms of its full-year guidance, Ford expects its Ford Blue unit as well as its Ford Ford Pro unit to attain an EBIT of $8 billion a piece. The company’s electric vehicle (EV) unit is expected to continue struggling,however, with its Model E unit expected to incur a full-year loss of $4.5 billion.

Still, Ford CEO Jim Farley expects the company to achieve its EV goals despite this hiccup, explaining, “The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford. EV customers are brand loyal and we’re winning lots of them with our high-volume, first-generation products; we’re making smart investments in capabilities and capacity around the world; and, while others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away.”

The company expects to reach a 600,000-unit EV production run rate in 2024, en route to achieving its manufacturing goal of 2 million EV units per year.

 

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