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Ford earnings: 43 cents per share, vs expected EPS of 32 cents

Ford beat Wall Street expectations Thursday with adjusted third-quarter earnings of 43 cents a share on $36.5 billion in revenue.

Here's how the company did compared to what Wall Street expected::

  • Adjusted EPS: 43 cents vs. 32 cents expected by analysts surveyed by Thomson Reuters.
  • Revenue: $36.5 billion vs. $32.8 billion expected in the Thomson Reuters survey.

Strong performance in North America and a record pre-tax profit in Asia drove automotive profits, Ford said.

Net income was $1.6 billion, compared with $1 billion in the same quarter of 2016.

Adjusted pre-tax profit of $2 billion was $548 million higher than the same quarter last year, driven by favorable costs and market factors, the company said.

Average transaction prices rose more than twice the industry average in the U.S., and incentives decreased.

Since hiring new CEO Jim Hackett, Ford is cutting costs and shaking up the senior leadership team. Shares of the No. 2 U.S. automaker have barely budged since the beginning of the year, while shares of rival General Motors have risen roughly 30 percent. Shares of upstart Tesla have risen more than 50 percent.

Like rival GM, Ford has been taking steps to refocus its lineup on trucks, SUVs and crossovers. The company is also rushing to invest in new mobility technologies to compete with efforts from other automakers and cash-rich Silicon Valley firms.

Several analysts have expressed caution about the stock in the near term.

Hackett has "a solid long-term vision," said RBC capital analyst Joseph Spak in a recent note, but he cautioned that Ford is still very early in its turnaround.

"To be frank, aside from some cost-cutting that may be realizable, given the lead times in auto," Spak said, "most of whatever Mr. Hackett proposes wouldn't have an impact until 2019 or 2020 at the earliest."

This is breaking news. Please check back for updates.


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