Ford Earnings: What Happened with F

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Ford bushed expectations connected some net and revenue

Key Takeaways

  • Ford's car measurement fell during Q2 FY 2021 owed to a semiconductor shortage.
  • Despite the slump successful volume, Ford bushed expectations connected some adjusted EPS and revenue.
  • U.S. customer-sold retail bid slope for Ford vehicles was 7 times that of Q2 FY 2020.
Ford Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Predictions
Adjusted Earnings Per Share Beat $0.13 -$0.10
Revenue (billions) Beat $26.8 $24.7
Total U.S. Truck Sales N/A 235,848 N/A

Source: Predictions based connected analysts' statement from Visible Alpha

Ford Financial Results: Analysis

Ford Motor Company (F) solidly surpassed expert predictions erstwhile it released its Q2 FY 2021 earnings study connected July 28. Ford posted adjusted earnings per share (EPS) of $0.13, acold surpassing expert predictions of -$0.10 for the quarter. The institution besides bushed connected revenue, reporting $26.8 cardinal successful full gross versus expert predictions of $24.7 billion. At year-over-year (YOY) maturation of astir 38%, gross climbed astatine its fastest gait successful astatine slightest 4 years.

Ford's Key Metric: U.S. Truck Sales

A cardinal metric for Ford is income of its trucks successful the U.S., 1 of the company's largest markets. Trucks are highly profitable for the company. Although Ford has not published a circumstantial fig for full U.S. motortruck income for Q2 FY 2021, publically disposable information from the institution amusement that U.S. motortruck income declined by astir 1% YOY.

Nonetheless, Ford said successful its Q2 net study that it did amended than expected with wide car measurement for the 4th fixed the ongoing planetary semiconductor spot shortage that has hindered production. The company's combined U.S. customer-sold retail bid slope for each Ford vehicles was 7 times larger than for Q2 FY 2020. President and CEO Jim Farley said the institution was "spring loaded" for a rebound erstwhile semiconductor supplies stabilize to conscionable demand.

Ford's Guidance and Stock Performance

Ford raised its guidance for FY 2021 adjusted EBIT by astir $3.5 cardinal to a scope of $9 cardinal to $10 billion. The institution expects measurement to summation by astir 30% sequentially from H1 to H2 FY 2021, though it volition apt beryllium offset by higher commodity costs and investments successful the company's Ford+ plan. Ford besides raised FY 2021 adjusted free currency flow guidance to betwixt $4 cardinal and $5 billion.

Ford shares were up astir 2.5% during after-hours trading instantly pursuing the net release. Overall, the company's banal has importantly outperformed the broader marketplace implicit the past year. Ford banal has provided one-year trailing total returns of 97.7% versus 36.7% for the S&P 500 arsenic of July 28.

Next Earnings Report

Ford's adjacent net study is estimated to beryllium released connected Oct. 28, 2021.

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  1. Ford Motor Co. "Ford’s Expectations for Better Full-Year 2021 Operating Results Driven by Strong Order Bank, Improving Semiconductor Supplies," Page 1. Accessed July 28, 2021.

  2. Ford Motor Co. "June 2021 Sales," Page 2. Accessed July 28, 2021.

  3. Ford Motor Co. "First Quarter 2021 Sales," Page 1. Accessed July 28, 2021.

  4. Ford Motor Co. "Ford’s Expectations for Better Full-Year 2021 Operating Results Driven by Strong Order Bank, Improving Semiconductor Supplies," Page 3. Accessed July 28, 2021.

  5. Ford Motor Co. "Ford’s Expectations for Better Full-Year 2021 Operating Results Driven by Strong Order Bank, Improving Semiconductor Supplies," Page 4. Accessed July 28, 2021.

  6. MarketScreener. "FORD MOTOR CO. (F)." Accessed July 27, 2021.

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