Ford offers weak outlook, stock falls
But at least it was better than last quarter.
Ford topped Wall Street’s expectations for third-quarter sales and earnings per share, but offered a tepid full-year outlook for operating earnings of $10 billion, at the bottom of the range it provided last quarter. The stock is reacting more to the milquetoast guidance than the quarterly result, falling in after-hours trading.
Profits fell 25% to $0.9 billion, pulled down by a previously announced $1 billion charge on the value of EV manufacturing assets. Revenues were up 5% from the third quarter last year, to $46 billion.
At least the Q3 numbers were better than last quarter, when the company badly missed expectations, largely due to costly fixes on old models as well as safety recalls.
That report crushed the stock, which fell roughly 30% in the week or so following the numbers. Ford continues to lag both the market and rival General Motors badly in 2024.
The cautious reaction to Monday’s earnings results suggests the market is still a bit gun-shy in light of its recent underperformance.
