Ford (F) Q21 earnings for 2021

Ford Motor Company e-transit electric car badge during a presentation in Washington, DC, USA on Wednesday, July 26, 2021.

Al Drago | Bloomberg | Getty Images

Detroit – Ford Motor is announcing third-quarter earnings after the market closed on Wednesday

Here’s what Wall Street expects based on average analysts’ estimates compiled by Refinitiv.

  • Adjusting EPS: 27 cents a share
  • Auto income: $ 32.54 billion

In July, Ford raised its guidelines for the year, but warned investors that the second half of the year would be weaker than the first in terms of its operating profit, which stood at $ 5.9 billion as of June. At the time, the company said full-year consistent revenue before tax would be between $ 9 billion and $ 10 billion and adjusted free cash flow between $ 4 billion and $ 5 billion.

The company raised its annual guidelines despite losing nearly half of its production in the second quarter due to an ongoing global shortage of semiconductor chips. Ford’s parts supply was expected to improve in the third quarter.

CFO John Lawler cites favorable high sales volumes of $ 3 billion to $ 4 billion, but says product costs, lower returns from Ford Credit and other factors such as the $ 500 million higher warranty costs drag on its results by the end of the year.

In the third quarter of 2020, Ford reported net profit of $ 2.3 billion and consolidated pretax profit of $ 3.6 billion. This was when dealerships and plants were reopened after being shut down in the second quarter due to the coronavirus epidemic. Its automotive revenue in the third quarter of 2020 was $ 34.7 billion.

Ford’s stock has risen nearly 80% this year, so in addition to third-quarter earnings, investors will be looking for any additional pulls on the automaker to be headlined next year.

Ford has received a few bullish calls from Wall Street analysts to move towards earnings, including an upgrade to Credit Suisse to go beyond neutral.

Ford’s biggest American rival, General Motors, reported third-quarter earnings on Wednesday morning, beating Wall Street estimates. Despite the bits, GM stocks fell more than 5% during intraday trading due to automaker reducing free cash flow guidelines for the year and not meeting some investor expectations for the rest of the year.

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