Ford blows away earnings expectations as consumers buy up trucks during pandemic – CNBC
Ford Motor blew away Wall Street expectations as well as the company’s forecasted earnings for the third quarter on stronger-than-expected demand during the coronavirus pandemic.
Here’s how Ford performed versus what Wall Street expected, based on average analysts’ estimates compiled by Refinitiv.
Adjusted EPS: 65 cents vs 19 cents expected, according to Refinitiv
Automotive revenue: $34.71 billion vs $33.51 billion expected, according to Refinitiv
Ford’s stock jumped by more than 6% during afterhours trading to about $8.20 a share. The stock close Wednesday at $7.70, down 2.8%.
The company earned $2.34 billion during the third quarter, up from roughly $423 million a year earlier. Its total revenue also increased by about $500 million to $37.5 billion from the third quarter of 2019.
“We executed very well this quarter,” Ford CFO John Lawler said Wednesday during a media briefing.
Incoming Ford CEO Jim Farley (left) and Ford Executive Chairman Bill Ford Jr. pose with a 2021 F-150 during an event Sept. 17, 2020 at the company’s Michigan plant that produces the pickup.
Michael Wayland / CNBC
Due to costs related to new or redesigned vehicle launches toward the end of the year, the company forecasted adjusted earnings for the fourth quarter to be between break-even and a $500 million loss. That would keep the company in the black for the year.
Former Ford CFO Tim Stone, who left the company earlier this month, told investors in July that the automaker expected earnings on an adjusted pretax basis of between $500 million and $1.5 billion during the third quarter. That would have been down from $1.8 billion in the third quarter of 2019.
Analysts and investors were watching to see if Ford will be able to outperform its previous projections as it did during the second quarter after consumer demand in the U.S. was stronger than anticipated, especially for trucks such as the Ford F-150.