Ford Motor cuts profit guidance, Q3 results hit; shares slide By Investing.com
Investing.com — Ford Motor lowered its full-year profit guidance on Monday despite reporting third-quarter results that beat Wall Street expectations.
Ford Motor Company (NYSE: ) fell 6% in retail trading on Tuesday.
The auto company reported earnings of $0.49 on revenue of $46.2 billion. Analysts polled by Investing.com expected EPS of $0.47 on revenue of $45.32 billion.
The deadline was hit by a previously announced $1 billion electric vehicle writedown as part of a reduction in its EV plans and prioritizing the development of hybrid models and electric commercial vehicles.
Looking ahead, the company now expects adjusted earnings before interest and taxes, or EBIT, of $10B in 2024, which was on the lower end of previous guidance of $10B to $12B.
“We believe Ford's '24 cut was expected and now appears to be a reality,” RBC Capital Markets analysts said in a note.
“Management has explained their high position to establish the seller's list and if they can reach their 50-60 day level in early '25 without sacrificing too much on price, we can be very constructive,” they added.
“However, until we see this, we remain cautious with concerns about a downward spiral in prices across the industry.”
Meanwhile, Jefferies analysts said Ford's Q3 results and Q4 performance guidance “reflect a strong continuation of trends in Q4.”
They note that Q4 performance is just below consensus expectations and will show strong year-over-year growth compared to Q4 2023.
However, the company's peers showed significantly weaker performance in the fourth quarter “and we want to understand where Ford sees its profits in the final weeks of the year,” analysts said.
Yasin Ebrahim contributed to this report.
