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Ford Motor Company Q3 2017 Earnings Boost Stock

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Ford Motor Company (NYSE:F) Q3 2017 earnings were released before opening bell this morning. The automaker reported adjusted earnings of 43 cents per share on $36.5 billion in sales. Analysts had been expecting earnings of 33 cents per share on $32.9 billion in revenue. In last year’s third quarter, Ford reported $35.9 billion in sales and 17 cents per share in adjusted earnings.

Ford Q3 2017 earnings

On a GAAP basis, Ford Q3 2017 earnings per share rose to 39 cents from 15 cents per share last year. North America drove the company’s automotive profits along with the company’s pre-tax profits in Asia. Outside North America, Ford’s operations were approximately breakeven, the company added.

Average transaction prices in the U.S. rose by more than double the average in the auto industry, driving the strong sales growth in North America. Ford’s F-Series trucks had their strongest third-quarter performance in more than 10 years with more than a 14% increase year over year. U.S. retail sales of Ford SUVs grew 4% driven by sales of the Edge and Explorer.

The automaker continues to expect its operating margin and profit to decline from last year on higher commodity costs, product costs and engineering expenses. In South America, pre-tax results jumped 46% on improving macroeconomic conditions, while in Europe, pre-tax results fell due to effects from Brexit, commodities and the launch of the Fiesta. Pre-tax results improved 61% in the Middle East and Africa.

Ford’s guidance beats estimates

“This quarter, we achieved more balanced results, with improvements in growth, profitability and cash flow, Executive VP and Chief Financial Officer Bob Shanks said in a statement about Ford Q3 2017 earnings. “Ford Credit also continues to perform well. Our solid results give us confidence to tighten our full-year adjusted EPS range to the high end of the range.”

Ford now expects its full-year earnings to come in between $1.75 and $1.85 per share, which is much stronger than the current consensus at $1.74 per share.

Following the Ford Q3 2017 earnings release, the automaker’s stock jumped by as much as 1.83% to $12.26 in premarket trading.

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