Ford shares up 10% as it beats the street on top and bottom lines
It was a stunning quarter from a company that two weeks ago was looking at what it was doing and whether it was going to have to shed 8,000 staff.
With the move to electric vehicles (EVs) it makes sense to shift the focus from building combustion engines to EVs, but last night's second quarter (Q2) earnings came as a pleasant surprise.
(Video Transcript)
Ford shares soar following Q2 earnings
In extended trade last night on the IG platform, Ford MotorFord Motor Co (All Sessions) saw its shares rise around about 10% as a result of earnings coming through for the most recent quarter, which impressed investors.
Let's take a look at the numbers we saw: $0.68 per share at the earnings per share (EPS) level. That was against an estimate of $0.45, beating that up from $0.12 last year. Automotive revenue came through at $37.9 billion, also beating estimates of $34.3 billion, which is a tripling of its profit line because according to the company's statement it was able to deliver more of its products to customers.
But the company said as well that inflation, specifically higher prices for key commodities and transportation, offset some of those gains. Nonetheless, it was a good night last night.
Ford's share price chart
Let's take a look at the share price chart, which is down from the highs that we saw back in January this year. That was at a 21-year high for Ford Motor. Since then, we've seen this pullback because of concerns once again about what's happening with supply chains and, of course, the war in Ukraine keeping a lot of the automotive products out of Ukraine, which is a big supplier of a lot of rubberised items especially, and plasticised items that the auto sector uses.
But since then, we've seen Ford source more of its products from other areas, and we've seen this rebound. That trade last night was extended trade up, and indeed, significantly, it rose above the highs that we saw back on the 3rd of June to take us to levels there not seen since the first couple of weeks of May this year, and we're building on that today. All-sessions on the IG platform this morning it was up a further 1.3%.
So, we're gaining across the board for Ford Motor to stop looking as though it could well rise at the start of today's cash session on the New York Stock Exchange.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
