Ford Motor Company raised its full-year guidance for adjusted EBIT to between $10 billion and $11 billion, up from $8.5 billion to $10.5 billion, following its second-quarter report on [date]. Despite a revenue miss of $44.89 billion against estimates of $45.86 billion, Ford’s shares rose over 3%. Adjusted earnings per share were reported at $0.42, surpassing Wall Street’s expectations by $0.07.
The company’s free cash flow guidance also increased to $6 billion to $7 billion, reflecting improved performance in its Blue division, which saw revenue of $26.1 billion. CEO Jim Farley highlighted strong demand for Ford’s F-Series trucks, which lead the market by over 80,000 units in sales over competitors in the first half of the year. Ford generated $1 billion in revenue from its electric vehicle division, although it recorded an EBIT loss of $900 million.
Analysts noted the potential for future stock increases, with Citigroup upgrading Ford’s rating to “buy” and setting a price target of $20, driven by factors like accelerating production and moderating material costs. Ford currently has a trailing dividend yield of 3.88%, and its projected free cash flow is expected to support approximately $2.4 billion in dividend payouts this year.
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