Ford Q3 Earnings Highlights: Revenue Beat, Dividend Returns, Strong Lightning Demand, Rivian IPO And More
Automotive company Ford Motor (NYSE: F) saw shares jump in the after hours trading session Wednesday after reporting third-quarter financial results. Here are the key details for investors.
What Happened: Ford reported third-quarter revenue of $35.7 billion, down 5% year-over-year. The figure came in ahead of analysts’ estimate of $32.5 billion.
The company reported adjusted earnings per share of 51 cents per share, beating a Street consensus of 27 cents per share.
Semiconductor availability was mentioned by the company as a challenge in the third quarter, but Ford did note an improvement from the second quarter that helped boost regional product shipments 67% from the prior quarter.
Dearborn’s Vehicle Sales Breakdown: Ford reported a 4.9% global market share for vehicles, with 1.01 million wholesale units sold in the third quarter. In China, the company had a 2.5% market share, the only reported region where it gained market share.
Ford’s Chinese Market Update: “In China, which is progressing with its own turnaround, retail sales of luxury Lincoln brand vehicles were up 24% year-over-year,” according to the automaker.
Ford opened its first direct-to-consumer Ford Select city stores in China in the third quarter. The stores will focus on selling electric vehicles, including the Mustang Mach-E.
The Ford Dividend: One of the most notable pieces in the financial report was Ford resuming its quarterly dividend in the fourth quarter with a quarterly payout of 10 cents.
The dividend will be paid on Dec. 1 to shareholders on record as of Nov. 19. The quarterly dividend represents an annual yield of around 2.5%.
Related Link: Ford Mustang Mach-E, Profits, Online Ordering Among Q2 Highlights For Blue Oval Analysts
What’s Next For Ford: Ford plans to invest $40 billion to $45 billion between 2020 and 2025 on “strategic capital expenditures.”
The company highlighted a new F-Series truck plant in Tennessee and new battery plants in Kentucky and Tennessee. The battery plants will take the company’s annual capacity in the U.S. to over 1 million units.
Ford is doubling yearly production volume for the upcoming F-150 Lightning electric pickup truck, citing “exceptional customer demand.”
Ford said it will record a gain on investment in its equity investment in Rivian as a special item — if the company completes its IPO.
Ford will report fourth-quarter financial results on Feb. 3 and said it will provide guidance for fiscal 2022 at that time.
F Price Action: Ford shares were gaining 5.29% to $16.33 in after-hours trading Wednesday.
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