Ford Motor (F) released its second-quarter earnings report on Wednesday, revealing EPS of 47 cents, a 35% drop from the previous year, with quarterly revenue of $47.8 billion. Before the earnings announcement, analysts had projected Ford’s earnings to be 68 cents per share and its sales to reach $47.79 billion, as reported by FactSet. The company maintained its 2024 adjusted EBIT forecast of $10 billion-$12 billion but raised its adjusted free cash flow outlook to between $7.5 billion and $8.5 billion. Ford also projected a continued full-year loss of $5 billion-$5.5 billion for its EV segment. As a result, Ford’s stock fell sharply, plunging 18.4% to $11.16 on Thursday, following a 1.2% decline the day before.
In comparison, on Tuesday General Motors (GM) reported better-than-expected earnings and raised its full-year outlook, driven by strong truck sales and record EV sales. Tesla (TSLA) also reported mixed Q2 results, with a notable decrease in EPS. Overall, U.S. new vehicle sales saw a modest increase in Q2, despite high interest rates and elevated vehicle prices. Ford’s Q2 performance included a 61% increase in EV sales, led by the Mustang Mach-E, and a 56% rise in hybrid vehicle sales to a record 53,822 units. However, sales of Ford's internal combustion engine vehicles, particularly the F-series trucks, continued to decline, though the introduction of a new F-150 model aims to reverse this trend. Despite the overall growth in vehicle sales, Ford faces ongoing challenges in its core segments and EV investments. This disappointing earnings report should prompt investors to reassess whether they truly believe Ford can recover from its recent slump.
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