Ford Motor (NYSE: F) almost doubled Wall Street’s earnings forecast and topped revenue expectations during its third quarter. Consequently, the company boosted its yearly guidance for the second time in 2021. The stock rose 11% following the news.
The automaker reported earnings of USD0.51 per share, compared to the expected USD0.27 a share. Revenue amounted to USD33.21 Billion, higher than analysts anticipated USD32.54 Billion.
“The results are showing, really, the underlying strength of our business,” Ford CFO John Lawler told reporters Wednesday during a call.
According to researcher Edmunds.com, Ford managed to corral the largest amount of inventory of vehicles within its industry and thus increased typical selling prices by 13% to USD51,460. The company credited the positive results to a slight ease in the ongoing semiconductor chip shortage.
“We’re fully invested in this future and we’re taking big swings,” Chief Executive Officer Jim Farley said on a call with analysts. “We’re moving aggressively to lead the electric vehicle revolution.”
Ford’s new full-year earnings guidance is anywhere from USD10.5 Billion and USD11.5 Billion, compared to the previous forecast of USD9 Billion to USD10 Billion. However, the company maintained its adjusted free cash flow expectations, which stand between USD4 Billion and USD5 Billion.
“I believe we have the right plan to drive growth and unlock unprecedented value,” Ford CEO Jim Farley told investors Wednesday during a call. “You’re already seeing favorable change in the slope of our earnings and cash flow. There’s more to come.”