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Ford Stock: Automaker Posts Earnings Beat, Lifts Guidance

Ford delivers better than expected results while managing through semiconductor supply shortages.

Ford Motor  (F) - Get Ford Motor Company Report beat Wall Street's second-quarter earnings expectations Wednesday and boosted its guidance despite a global semiconductor shortage that has dogged the auto industry. 

Shares of the Dearborn, Mich. company were up 2.53% to $14.21 in after-hours trading.

Ford posted adjusted earnings of 13 cents a share and revenue of $26.8 billion. Automotive revenue came to $24.13 billion.

Analysts surveyed FactSet were looking for the company to post a loss of three cents a share and revenue of $23 billion.

In the same period a year ago, the company posted a loss of 35 cents a share and revenue of $19.4 billion.

In April, with the semiconductor situation worsening, Ford said it expected to lose about 50% of its planned second-quarter production.

Looking ahead, Ford raised its guidance for full-year adjusted earnings before taxes by about $3.5 billion, to between $9 billion and $10 billion. 

The company said volume is expected to increase by about 30% sequentially from the first to the second half of the year.

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The volume benefit is anticipated to be offset by higher commodity costs, investments in the company's Ford+ turnaround plan and lower earnings from Ford Credit, among other factors, with second-half adjusted EBIT lower than in the first half.

The company also lifted its target for full-year adjusted free cash flow to between $4 billion and $5 billion, due to expected favorable second-half working capital as vehicle production increases with anticipated improvement in availability of semiconductors. 

Earlier this month, Ford said that it sold more than 306,700 vehicles in Greater China in the first half of 2021, up 24% year-over-year. 

The company posted record sales of electrified vehicles over the first half of the year, offsetting a 27% slump in total June sales that were hit by chip shortages and plant closures.

In June, Ford said that its current-quarter earnings would exceed forecasts even as it cautioned on the uncertainty linked to a global shortage in semiconductor supplies.

In April, the company posted first-quarter earnings that beat analysts forecasts and reiterated guidance.

Ford said in February it would invest $29 billion into electric and autonomous vehicles.

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