Ford Earnings: Warranty Problems on Older Vehicles Slam Results
Ford’s stock fell more than 11.5% in July 24 after-hours trading following disappointing second-quarter results. Adjusted diluted earnings per share of $0.47 fell 34.7% year over year and badly missed the $0.68 LSEG consensus. We are not changing our fair value estimate but have lowered our 2024 profit projection, which was mostly offset by the time value of money. Total company-adjusted EBIT fell by $1 billion, or 26.3%, and EBIT margin declined by 270 basis points to 5.8%. This metric significantly trails GM’s 9.3% reported on July 23. Ford’s 2024 adjusted EBIT guidance remains $10 billion-$12 billion.