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Ford Shares Sink After Disappointing Second Quarter
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Ford shares fell on Thursday after the automaker said on Wednesday it missed a second-quarter profit and did not raise its full-year profit guidance like its Big Three rival GM.
For the quarter, Ford reported revenue of $47.8 billion versus an estimated $43.37 billion (according to the Bloomberg consensus), a result that was 2.9% higher than a year ago. Ford reported adjusted EPS (earnings per share) of $0.47 vs. estimates of $0.67, on adjusted EBIT (earnings before interest and taxes) of $2.8 billion vs. expectations of $3.73 billion, missing both estimates.
In terms of guidance, Ford maintained its current full-year adjusted EBIT of $10 billion to $12 billion, but the company raised its adjusted free cash flow forecast by $1 billion to between $7.5 billion and $8.5 billion.
“We don’t see that the second half will be much different from the first half, nor that it will decline,” Ford CFO John Lawler said in a press conference. Lawler said the higher costs and warranties negate the gains made in the Ford Pro.
“That was part of our guidelines, and we plan to do that.”
Ford shares are down over 16% after this morning’s open.
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