Ford Expects Q2 Earnings To Exceed Expectations

Previous Expectations And Actual Results

The American multinational automaker expects that its Q2 adjusted earnings (pre-tax) will be above the expectations. Also, these second-quarter results will surpass the results from a year ago. That is not an immaterial comparison since the previous Q2 was a true test of resilience and the ability to resume normal operations after the pandemic punch.

Ford showed us then that it is more durable than expected when it performed far better than Wall Street predicted and reported an adjusted EPS -$0.35 and automotive revenues of $16.6 billion, while the expected adjusted EPS was -$1.17 and the expected revenues were $ 15.95. So, if the company says it will surpass this second quarter again, and the results will be significantly better than a year before, that means something.

Expected Q2 Net Income

Current Issues & Outlook

Even though the pandemic is on a decline in the US, the global shortage of semiconductor chips makes automakers reduce their initial production plans. Ford has already "lost" around 200.000 units in Q1, and the revised plan for Q2 was 700.000 units, which is around 50% of the originally planned production. This is not a surprise since today's vehicles are becoming more and more like computers.

And since we changed our habits to word from hove a rely more on IT solutions, which are also reliant on semiconductors, there is a supply-demand mismatch. Hopefully, this gap will be resolved soon!

The post Ford expects Q2 earnings to exceed the expectations appeared first on IAM Newswire.

Image by Miomir Djurovic from Pixabay

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