Ford (F) Gains as it Expects Adjusted Q2 Profit Ahead of Expectations

June 17, 2021 9:03 AM EDT

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

Ford (NYSE: F) rose 2.5% in pre-open trading after the company announced today its adjusted earnings before interest and taxes in the second quarter will come ahead of expectations and “significantly better” than results recorded a year ago.

Ford is experiencing “improvement” in the car business since it last guided on April 28. The outperformance is mostly driven by lower-than-anticipated costs and favorable market factors.

“Net income for the second quarter of 2021 is expected to be substantially lower than a year ago, when results included a $3.5 billion gain on Ford’s investment in Argo AI,” the company said in a press release.

This way, F joined General Motors (NYSE: GM) in projecting earnings ahead of guidance. Ford is due to report Q2 results and guidance on July 28.

“We’re providing customers with great value today and there’s much more on the way, because we’re executing Ford+ from strength – with iconic nameplates and leading positions with retail and commercial customers around the world, and the best financing company in our industry in Ford Credit,” President and CEO Jim Farley said.

Forded added that it has registered 190,000 reservations for its full-size Bronco SUV, with 125,000 already converted to orders. Moreover, the company has 100,000 orders for the battery-electric F-150 Lightning pickup, 36,000 for the all-new Maverick compact pickup, and 20,000 for the all-electric E-Transit commercial van.

Elsewhere, Ford will have to pay about 2.5 billion Brazilian reais ($495 million) to the state of Bahia after the US carmaker decided to shut down its plants in Brazil.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Corporate News, Guidance

Related Entities

Earnings, Pre Market Movers