Ford Motor Co. Reports Strong Quarterly Earnings but Faces Setback in EV Production

Ford Motor Co. announced better-than-expected quarterly earnings and raised guidance on Thursday. However, the positive news was overshadowed by a setback in the company’s electric vehicle (EV) production, causing the stock to decline by more than 4% on Friday.

Bond Market Reacts to Ford’s News

The impact of Ford’s announcement was also felt in the bond market. According to data from BondCliQ Media Services, there has been a slight increase in selling activity since 8.00 a.m. Eastern on Friday as indicated by the blue line on the chart below.

This contrasts with the pattern witnessed in the last 10 days, highlighting the concerns sparked by Ford’s recent development.

Impressive Quarterly Results

Ford’s quarterly profit, symbolized by ticker symbol F, was approximately three times higher than the previous year’s quarter. The company’s revenue also experienced a significant boost, rising by 12% and surpassing consensus estimates. This information was reported by Claudia Assis.

Focus on EV Production Milestone

However, despite the impressive financial performance, investors zeroed in on Ford’s new timetable for achieving a production rate of 600,000 EVs in 2024. This caused some concern as Ford initially stated that it would reach this milestone by the end of this year when reporting first-quarter earnings in May.

CFRA analyst Garrett Nelson expressed disappointment with Ford’s EV production growth during a statement on Thursday.

Key Financial Highlights

In the second quarter, Ford earned $1.9 billion, or 47 cents a share, which is almost three times higher than the year-ago period. The automaker reported a 4% margin. When adjusting for one-time items, Ford earned 72 cents a share.

Furthermore, Ford’s revenue increased by 12% to $45 billion. The company emphasized that its cash and liquidity remain persistently strong. The revenue growth includes a remarkable 39% increase in Ford’s EV business.

Analysts’ Expectations Surpassed

Analysts polled by FactSet anticipated adjusted earnings of 54 cents a share on sales of $43.17 billion. Ford managed to surpass these expectations, reinforcing its positive performance in recent months.