Ford stock sinks after earnings miss estimates

Ford Motor (F) reported second quarter adjusted earnings per share of $0.47, well below the expected $0.67.

Both the Ford Pro and Ford Blue units reported better-than-expected revenue for the quarter, but Ford Model e, its EV unit, revenue fell short, $1.1 billion versus the estimated $1.31 billion. Ford Blue's EBIT was $1.17 billion versus the estimated $2.43 billion.

The company did raise its adjusted full-year free cash flow estimate to $7.5 billion to $8.5 billion from $6.5 billion to $7.5 billion.

Market Domination Overtime anchors Julie Hyman and Josh Lipton recap the automaker's results in the video above.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Stephanie Mikulich.

Transcripción del vídeo

And we've got some of those promised earnings coming out.

Let us start with Ford.

The share is taking a quick leg down of 7% and that's as on a what looks like a big miss on the bottom line.

47 cents a share is what Ford reported in earnings that is 20 cents light of the average analyst estimate.

Uh, the company is keeping its full year EBIT forecast its profitability forecast unchanged here interest.

But if you look at the revenue breakdown from its different its different divisions the Ford Blue, which is its traditional gasoline powered vehicles, $26.7 billion in revenue that's ahead of estimates.

Ford model E. It's EV business.

Missing estimates at $1.1 billion versus the 1.3 billion that was estimated.

And we've been talking a lot about the Ford Pro business, which was expected to be strong.

It $17 billion in revenue 16.5 around is what analysts had been anticipating.

But it's really profitability.

That appears to be the problem here.

I'm just looking at the different business lines here.

It looks like Ford Blue in particular, was amiss in terms of profitability.

The company does say profitability was affected by an increase in warranty reserves.

The efforts to lift the quality of new products are starting to pay off with positive implications for customer satisfaction and Ford's operating performance.

So, as far as I can tell, here it is that warranty issue that seems to have hit profitability.

But I'm gonna keep digging in here.

What?

What stands out to you?

At first?

I I'm just looking at comments by President CO Jim Farley as well, um, talks about Ford Plus is on track.

Our underlying quality is improving.

Um, he also mentions JD power, uh, last month, reporting that Ford jumped 14 spots number nine in in in the company's 2024 initial quality study.

Uh, Farley, saying our own evaluations are showing similar quality gains.

Uh, that that was a CFO John Lawler saying there, uh does not what declined the number of incidents during the critical first three months and serve, um, so I'm I'm just looking through the results as well.

They also talking here.

Juliette, I'm I'm interested in what's going on with the EV unit A as well, executives saying over time we're gonna build, um, benefits from Ford Blue and Ford Model E customers further distinguish us from other automakers, traditional and new ones.

Obviously, we we know there's a tonne of competition in this space.