HomeIndustriesFord Shares Slump Following Earnings Miss

Ford Shares Slump Following Earnings Miss

Ford reported its financial results for the second quarter on Thursday, missing estimates. The automaker reported a Q2 revenue of $47.8 billion, exceeding $43.37 billion estimates compiled by Bloomberg. While revenue beat estimates and rose 2.9% on an annual basis, the company’s profit disappointed.

Net profit for the quarter came to $2.8 billion, falling significantly short of $3.73 billion estimates. This came to earnings per share of $0.47, lower than an expected $0.67 per share. Despite its disappointing profit, Ford has maintained its current full-year outlook, with an adjusted net profit in the range of $10 billion to $12 billion. The company did raise its adjusted free cash forecast, however, by $1 billion to $7.5 billion to $8.5 billion.

In a call with reporters, Ford CFO John Lawler exhibited confidence in the company’s ability to remain financially stable. “We don’t see the second half being much different than the first half, or falling off,” he stated, adding that the Ford Pro commercial and super duty truck business was hit by higher warranty costs. Still, the overall Ford+ plan appears to still be on track, the CFO assured.

Shares in the company fell by 12% during pre-market trading on Thursday.

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