Ford reported quarterly earnings and revenue that beat analysts’ expectations on Wednesday.
Here’s how the company did compared to what Wall Street expected:
- EPS: 56 cents per share adjusted vs. 43 cents per share expected, according to Thomson Reuters
- Revenue: $39.9 billion vs. $37.1 billion expected.
The company reported a second-quarter net income of $2 billion, or 51 cents a share, compared with 49 cents per share, a year earlier.
On an adjusted basis, Ford earned 56 cents a share, which outpaced analysts estimates of 43 cents a share, according to Thomson Reuters estimates.
“This quarter shows the underlying health of our company with strong products like F-Series and commercial vehicles around the world, but we have opportunity to deliver even more,” said recently appointed CEO Jim Hackett. “The entire team is focused on improving the fitness of the business and smartly deploying our capital to improve both the top and bottom lines in the quarters ahead.”
Shares were down less than one percent before the market’s open.
North America drove profits for the automotive business, though Europe and Asia Pacific regions were also profitable, the company said. Other regions in total broke even.
Pre-tax profits for Ford Credit were $619 million, a 55 percent increase over the same quarter last year.
Ford forecasts full year earnings per share to be $1.65 to $1.85.
The company reported lower adjusted pre-tax profit of $2.5 billion, versus $3 billion in the same quarter last year, citing factors such as higher steel costs, unfavorable exchange rates.
Average transaction prices rose nearly five times the industry average and incentives declined, even though incentives rose for the industry overall, the company said in a statement.
Hackett, who had run the company’s mobility efforts, is tasked with reshaping the automaker in the face of declining sales across the industry in the U.S. and potential competition from deep-pocketed tech companies.
Investors will likely look to see if industry outsider Hackett is beginning to form plans to reinvigorate Ford’s growth.
Hackett replaced Mark Fields, who had risen through the ranks at the automaker before taking the helm.
Ford shares have underperformed the broader market and are down more than 7 percent since the start of the year.
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