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Nov. 1, 2021, 5:58 a.m. EDT

How Ford Delivered an Earnings Smasher

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Nov 01, 2021 (Baystreet.ca via COMTEX) -- Investors who dumped shares of Ford Motor /zigman2/quotes/208911460/composite F -0.35% will regret the sale. Ford posted an earnings smasher that sent the stock to new 52-week highs. After re-instating the 10-cent dividend, the ICE (internal combustion engine) value stock will attract income investors.

In Q3, Ford posted revenue of $35.7 billion. Net income topped $1.8 billion and adjusted EBIT was $3 billion. Ford benefited from a significant increase in semiconductor availability. Higher wholesale vehicle shipments drove sales. In North America, an EBIT margin of 10.1% is a welcome reversal.

Looking ahead, Ford expects a full-year EBIT of $1.05 billion to $11.5 billion. The strong cash position of $31.5 billion lets the previously struggling automaker to invest back in the business until 2025. For example, capital expenditure in 2020-2025 is $40 billion to $45 billion.

Ford must upgrade operations and revamp every aspect of the business. Tesla /zigman2/quotes/203558040/composite TSLA +2.07% is trouncing it on the electric vehicle segment. Fisker /zigman2/quotes/209924856/composite FSR -2.27% and Lucid Motor /zigman2/quotes/221104327/composite LCID -5.78% are bringing EVs to market next. Furthermore, premium brands like BMW, Volvo, Mercedes-Benz, and Volkswagon have EV ambitions.

Fortunately, VW's ID-named EV is a flop. Sales are struggling, so it may give Ford's Mach-E a chance. F stock is at a high, so investors should wait for a drop before considering this company.

COMTEX_396167467/2559/2021-11-01T05:57:48

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

/zigman2/quotes/208911460/composite
US : U.S.: NYSE
$ 19.91
-0.07 -0.35%
Volume: 135.79M
Jan. 26, 2022 4:10p
P/E Ratio
27.47
Dividend Yield
2.01%
Market Cap
$79.84 billion
Rev. per Employee
$723,737
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/zigman2/quotes/203558040/composite
US : U.S.: Nasdaq
$ 937.41
+19.01 +2.07%
Volume: 34.96M
Jan. 26, 2022 4:00p
P/E Ratio
303.53
Dividend Yield
N/A
Market Cap
$922.32 billion
Rev. per Employee
$662,097
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/zigman2/quotes/209924856/composite
US : U.S.: NYSE
$ 11.20
-0.26 -2.27%
Volume: 10.69M
Jan. 26, 2022 4:10p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.40 billion
Rev. per Employee
$520.33
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/zigman2/quotes/221104327/composite
US : U.S.: Nasdaq
$ 33.41
-2.05 -5.78%
Volume: 51.06M
Jan. 26, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$58.38 billion
Rev. per Employee
N/A
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