Ford Trades Higher On Q4 Beat, Automaker Warns Of Semiconductor Shortage's Impact

Ford Motor Company F shares were trading higher in Thursday's after-hours session after the automaker reported fourth-quarter eanrings of 34 cents per share, beating the Street estimate of a 7-cent-per-share loss. 

This is an 183.33% increase over earnings of 12 cents per share from the same period last year.

Ford's fourth-quarter sales of $36 billion topped a $33.89-billion Street estimate. 

Ford's 2021 Guidance: Ford is on track to earn $8-$9 billion in adjusted EBIT, including a $900-million noncash gain, on its Rivian investment and generate $3.5 billion to $4.5 billion in adjusted free cash flow in 2021, CFO John Lawler said in Thursday's press release. 

Yet a global semiconductor shortage is creating uncertainty and will affect Ford's 2021 results, Lawler said. 

“The semiconductor situation is changing constantly, so it’s premature to try to size what availability will mean for our full-year performance,” he said. “Right now, estimates from suppliers could suggest losing 10% to 20% of our planned first-quarter production.”

If those production losses continue through the first half of 2021, Dearborn's 2021 adjusted EBIT could fall by $1-$2.5 billion, the company said. 

Ford said it will provide an update on the semiconductor issue in its first-quarter report April 28.  

Farley's Q4 Takeaways: “The transformation of Ford is happening and so is our leadership of the EV revolution and development of autonomous driving,” Ford President and CEO Jim Farley said in a statement.

“We’re now allocating a combined $29 billion in capital and tremendous talent to these two areas, and bringing customers high-volume, connected electric SUVs, commercial vans and pickup trucks.”

F Price Action: Ford shares were up 2.9% at $11.70 in Thursday's after-hours session. 

Courtesy photo.