Ford Shares Rise on Strong Earnings and Details of Turnaround Plan

Ford Motor Co. (NYSE: F) shares were up more than 8% on Thursday after the Company delivered better-than-expected earnings Wednesday night.

Investors seemed encouraged by Chief Executive Officer Jim Hackett’s pledge to share more details of his plans to restructure the Company and improve efficiency.

Ford is going to host several events in the “coming weeks and months” where it will share more information about Hackett’s USD 11 Billion turnaround plans. Hackett has spoken extensively of the need to improve the company’s “fitness,” or efficiency, but investors have at times expressed frustration at what they say is a lack of clarity and transparency on Ford’s part.

The automaker’s shares have fallen roughly 30% since the beginning of the year.

It seems that Mr. Hackett understands that the Street needs more information to gain comfort with his plan, and as such he hinted that there are a number of investor events planned for the near future,” said RBC analyst Joseph Spak in a note published Thursday.

The nation’s No. 2 automaker posted unexpectedly strong results in North America, where it sold a richer mix of pricey trucks and sport-utility vehicles in its home U.S. market. That helped push revenue up about 3%, to USD 37.6 Billion, easily surpassing analysts’ expectations.

Ford swung to a USD 378 Million third-quarter loss in China, from a profit of USD 102 Million a year earlier. Ford’s performance has been far worse than the broader industry in China, where sales edged higher by 1.5% in the first nine months of the year, though they have fallen in recent months. Ford’s sales there were down 30% in the first three quarters.

“The results really show an enhanced focus on North America, and a focus on trucks and SUVs,” CFRA analyst Garrett Nelson told CNBC. Nelson was surprised the automaker maintained its full-year earnings guidance of USD 1.30 to USD 1.50 per share, and said he expects earnings to come in at the low end of that range.

Ford still faces challenges on numerous fronts, including risks from rising materials costs, threats to both supplies and sales from new tariffs, and struggling international businesses.

2 Comments
  1. Michelle Schneider 1 month ago
    Reply

    $F another pretty classic reversal pattern after earnings-must hold 8.60

  2. William Cedar 1 month ago
    Reply

    I don’t think $F is gonna make it. It’s sad but they just can’t pivot in time. Converting those ICE F150 manufacturing lines into EV lines is probably as much $ as starting from scratch. If they could do an EV F150 in the next 3 years they might have a chance, otherwise $TSLA FTW

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