Ford said adjusted earnings for the three months ending in September were pegged at 65 cents per share, nearly double the same period last year and firmly ahead of the Street consensus forecast of 19 cents per share. Revenues, as well, surprised to the upside , rising 10.5% to a forecast-beating $37.5 billion.
Ford also said it expects to see solid gains over the final months of the year, forecasting 2020 adjusted earnings in the range of break-even to a loss of $500 million, thanks in part to continued domestic demand for its higher-margin pickups and SUVs.
"When you look at our results, they reflect the benefit of our decision two years ago to allocate capital to our strongest franchise, namely: pickups, a whole range of utilities across the world, commercial vehicles, and iconic passenger vehicles," Ford CEO Jim Farley told investors on a conference call late Wednesday. "Additionally, we saw higher-than-expected demand for our new vehicles in the quarter."
"At a time when inventories are really low following the virus-related first half factory shutdowns. Now this contributed to a very favorable pricing environment and mix," he added. "Together, these factors, plus the strongest performance from Ford Credit in 15 years, led to a total company adjusted EBIT margin of 9.7%. That's 490 basis points higher than last year."