Ford Shares Rise On Earnings Beat, Cuts To Capital Spending

Ford Motors Co. (NYSE:F) just released its latest quarterly financial results, posting earnings of 43 cents per share and total revenues of $41.96 billion.

Currently, F is a Zacks Rank #3 (Hold), but that could change based on today’s results. Estimates have increased by a penny for the current year over the last two months, and the Zacks Consensus sits at $1.54 per share.

Shares of the auto giant have fallen a little over 3% in the last year and closed the trading day up 1.4%. The stock is up over 2% in after-hours trading shortly after the earnings report was released.

Ford:

Beats earnings estimates. The company reported earnings of 43 cents per share, surpassing the Zacks Consensus Estimate of 41 cents per share. Net income was $1.7 billion.

Beats revenue estimates. The company saw revenues of $41.96 billion, also topping our consensus estimate of $37.05 billion and growing over 7% year-over-year.

Total adjusted EBIT came in at $2.2 billion.

Taking a look at its Automotive segment, wholesales brought in $1.66 million on revenues of $39 billion.

In its North America region, Ford saw year-over-year declines in EBIT and EBIT margin due to higher commodity costs, but volume, mix, and net pricing were positive. Additionally, total costs were flat, excluding commodities.

Ford also introduced a plan to reduce its capital spending by $5 billion over 2019 to 2022 to $29 billion.

“We are committed to taking the appropriate actions to drive profitable growth and maximize the returns of our business over the long term,” said Jim Hackett, president and CEO. “Where we can raise the returns of underperforming parts of our business by making them more fit, we will. If appropriate returns are not on the horizon, we will shift that capital to where we can play and win.”

Here’s a graph that looks at Ford’s recent earnings performance:

Ford Motor Company Price, Consensus and EPS Surprise

Ford Motor Company Price, Consensus and EPS Surprise | Ford Motor Company Quote

Ford is an American multinational automotive and mobility company. The company designs, manufactures, markets and services a full line of Ford cars, trucks, SUVs, electrified vehicles and Lincoln luxury vehicles, and is pursuing leadership positions in electric cars, autonomous vehicles and mobility solutions. Together with its subsidiaries, Ford Motor Co., designs, manufactures, markets, and services automobiles in North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The company has four operative segments that represents the primary business - Automotive, Financial Services, Ford Smart Mobility, and Central Treasury Operations.

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