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Ford raises guidance, says chip shortage is easing

Ford Motor Co. stock rose more than 3% in after-hours trading Wednesday after the auto maker reported mixed third-quarter results but raised guidance for this year, resumed paying a dividend and said chip shortages are easing.

Ford
F,
-2.70%

said it earned $1.8 billion, or 45 cents a share, in the third quarter, compared with $2.4 billion, or 60 cents a share, in the year-ago period. Adjusted for one-time items, the company earned 51 cents a share.

Revenue fell 5% to $35.7 billion from $37.5 billion a year ago.

Related: More electric pickup trucks are coming to market. The question now is who will buy them?

Analysts polled by FactSet expected the auto maker to report adjusted earnings of 27 cents a share on sales of $38.2 billion.

The company cited “high demand” for its new vehicles, including EVs. “This is the most exciting Ford lineup I’ve seen,” Chief Executive Jim Farley said in a statement.

Ford increased its guidance for full-year 2021 adjusted EBIT to between $10.5 billion and $11.5 billion.

“Semiconductor availability remains a challenge, but markedly improved from the second quarter,” helping lifting North American shipments.

Ford will resume paying a dividend in the fourth quarter, it said.

Ford shares last week rallied to a six-year high, getting a boost from Credit Suisse turning bullish on the shares and rating it a buy.

See also: Chasing Tesla: Here are the current electric vehicle plans of every major car maker

Shares of Ford have gained 78% so far this year, compared with gains of around 22% for the S&P 500 index
SPX,
-0.51%
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