Ford Shares Plunge Almost 10% After Q3 Earnings Despite Beating Estimates

Ford Motor Co F shares opened on Tuesday morning with a 10% nosedive a day after the company released its third-quarter financial results post-market, according to Benzinga Pro.

Ford reported a revenue of $46.2 billion, surpassing the consensus estimate of $41.88 billion. The company’s earnings per share were 49 cents, exceeding the expected 47 cents.

However, the EV segment, branded as “Model e,” recorded a significant EBIT loss of $1.2 billion in the third quarter. Its sales saw a 33% year-over-year decline, while global hybrid vehicle sales grew by 30% during the quarter. The Model e segment reported an EBIT loss of $1.2 billion, though the company noted improvements in profit trajectory due to cost reductions.

"Clearly, our strategic advantages are not falling to the bottom line the way they should," CEO Jim Farley said during the earnings call.

"Costs, especially warranty, has held back our earnings power."

See Also: Lucid CEO Throws Cold Water On Tesla’s Robotaxi Vision, Says Self-Driving Cars Won’t Happen ‘Till The 2030s’

This loss is attributed to industrywide pricing pressures, which have been a persistent issue throughout the year, leading to a cumulative loss of $3.7 billion by the end of September. Ford now anticipates a full-year EBIT loss of $5 billion for the Model e segment.

Ford projects a full-year adjusted EBITDA of approximately $10 billion, which is down from the range of $10 billion to $12 billion range. The company also anticipates free cash flow between $7.5 billion and $8.5 billion.

CEO Jim Farley has highlighted the impact of aggressive pricing and leasing tactics by competitors, which have further strained the company’s EV segment. These challenges underscore the competitive landscape in the EV market and the pressures automakers face in maintaining profitability while transitioning to electric vehicles.

Read Next:

• Tesla Cybertruck Customers Must DIY Off-Road Light Bar Installation As Employees Are ‘By Law’ Barred From Assisting

Image via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari