Ford Motor Company (NYSE:F) reported a disappointing second quarter with an EPS of $0.47, falling short of the analyst estimate of $0.68. The company’s revenue for the quarter reached $47.8 billion, below the Street estimate of $48.09 billion.
In response to the earnings miss, Ford’s stock dropped by 12% in pre-market today, reflecting investor concerns over the profit shortfall.
CEO Jim Farley highlighted some positive aspects of the quarter, pointing to the success of Ford Pro, which achieved a quarterly EBIT of $2.6 billion with a 15% margin on a 9% revenue increase.
Farley also noted a 34% rise in hybrid sales, which now make up nearly 9% of Ford’s global vehicle mix, and a cost reduction for the Ford Model e by approximately $400 million.
Looking forward, Ford reaffirmed its full-year 2024 adjusted EBIT guidance, maintaining it at $10 billion to $12 billion. The company also raised its FCF outlook by $1 billion, now projecting it to be between $7.5 billion and $8.5 billion.
This adjustment reflects Ford’s confidence in its cash-generating abilities and the ongoing execution of its Ford+ plan, which aims to establish a foundation for profitable, long-term growth.