Ford Motor Stock Higher After Profit and Revenue Beat Estimates

Ford Motor shares were higher after the auto maker reported that third-quarter net income leaped on 1.4% higher revenue.
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Ford Motor  (F) - Get Report shares were higher after the auto maker reported that third-quarter net income leaped on 1.4% higher revenue.

The Dearborn, Mich., auto giant earned 60 cents a share in the third quarter, compared with 11 cents a share in the year-earlier quarter. The latest adjusted earnings were 65 cents a share against the year-earlier 34 cents.

Revenue reached $37.5 billion from $36.99 billion.

A survey of analysts by FactSet produced consensus estimates of net income of 18 cents a share, or an adjusted 20 cents, on revenue of $35.72 billion.

At last check Ford shares were trading up 5.8% at $8.15. They finished the regular session on Wednesday down 2.7% at $7.71.

The third quarter "reflected Ford’s better execution and benefits from the company’s decision two years ago to reallocate capital to franchise strengths – pickup trucks, SUVs, commercial vehicles and iconic passenger vehicles – and phase out unprofitable sedans," Chief Executive Jim Farley said in a statement.

Ford Credit also had its "strongest performance in 15 years," the company said.

On Oct. 13 Deutsche Bank analyst Emmanuel Rosner made what the investment firm calls a catalyst buy on Ford.

That's a short-term call. Rosner, according to Barron's, actually had a hold rating on the stock with a $9 price target.

"Ford could materially outperform [third-quarter] consensus earnings expectations," Rosner wrote in a report.

CEO Farley, who took the top job in October, and "a robust product cycle could prompt investors to anticipate a more aggressive turnaround trajectory, helping the stock" trade at a higher multiple in the near term, the analyst wrote.

And on Oct. 12 Benchmark analyst Michael Ward upgraded Ford to buy from hold and set a stock-price target of $10.

The analyst cited "better-than-expected North American production, a positive shift in mix and improving metrics in the auto credit markets."

Looking ahead, Ford anticipates fourth-quarter adjusted results before interest and tax to range from break-even to a $500 million loss.

Based on that Q4, Ford expects positive adjusted company EBIT for full-year 2020.