Ford Motor Co Earnings Report (Q3 2021)

Ford’s earnings blew expectations out of the water, reaffirming the company as a strong contender in the car making market.
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Ford Motor Co’s Q3 2021 earnings took everyone by surprise as the company reported figures way above analyst expectations.

Revenue for the third quarter was $35.7 billion, with automotives accounting $33.2 billion of that number. Analysts expected $32.74 billion in automotive revenue.

Earnings per share (EPS) came in at $0.51 per share (adjusted), with analysts expecting $0.27 per share. That is almost double the expectations.

Ford’s market share in the automotive industry fell to 4.9%.

In its press release, Ford said:

“Improvement in semiconductor supplies in North America in the third quarter helped lift regional product shipments 67% from Q2. That increased volume pushed the business unit’s EBIT margin to 10.1%. Through the first three quarters of 2021, North America’s EBIT margin was 9.0%, approaching the full-year 2023 regional target of 10%.”

They also said profitability improved in Europe, where Ford remains the No.1 commercial brand.

Ford also announced they are reinstating their quarterly dividends to shareholders:

“Ford’s board of directors voted to reinstate a regular quarterly dividend starting in Q4. The fourth-quarter dividend of 10 cents per share on outstanding common and Class B stock will be paid on Dec. 1 to shareholders of record at the close of business on Nov. 19.”

“What’s certain is that we’re going to keep investing smartly and heavily in Ford+ – customer- facing technology and always-on relationships, connectivity, and EVs – on top of a foundation that’s broad and deep,” said Lawler, CFO of Ford. “We believe the long-term value creation from these investments will be substantial.”

Ford also said that they plan to provide financial guidance for 2022 when it reports fourth-quarter and full year 2021 financial results on February 3.

Shares of Ford Motor Co gained $1.37 (8.8%) on the release of these Q3 results in the afterhours market. At the time of writing, Ford is trading at $16.87 pre-market on Thursday.

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