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Ford shares tumble 11% after massive earnings miss

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The Ford display at the New York International Auto Show on March 28, 2024. 
Danielle DeVries | CNBC

DETROIT – Ford Motor is set to report second-quarter earnings after the markets close Wednesday.

The Detroit automaker’s results are expected to be relatively healthy, although down from the second quarter of 2023 and not as strong as its crosstown rival General Motors, which released earnings Tuesday.

Here is what Wall Street is expecting, according to average estimates compiled by LSEG:

  • Adjusted earnings per share: 68 cents
  • Automotive revenue: $44.02 billion

Those results would mark a 3.8% increase in revenue compared to a year earlier and a 5.2% decline in adjusted earnings per share. Ford’s second-quarter results last year included $42.43 billion in revenue, net income of $1.92 billion, or 47 cents per share, and adjusted earnings before interest and taxes of $3.79 billion.

Ford’s guidance for the year includes adjusted earnings before interest and taxes, or EBIT, of between $10 billion and $12 billion and free cash flow of $6.5 billion to $7.5 billion.

Ford’s stock is up about 15% this year, as pricing in the automotive industry has remained more resilient than expected.

But as the industrywide transition to electric vehicles takes off more slowly than anticipated, the automaker has adjusted its product plans to focus less on all-electric vehicles and more on hybrids.

Most recently, Ford last week said it plans to expand production of its large Super Duty trucks to a Canadian plant that was previously set to be converted into an all-electric vehicle hub.

This is breaking news. Please check back for updates.

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