Ford's Huge Earnings Beat Is Great News for the Future -- and for GM
On Wednesday afternoon, Ford Motor (NYSE: F) reported excellent third-quarter results, blowing past the downbeat forecast it issued three months ago as well as analysts' expectations.
This earnings beat doesn't mean Ford has solved all of its long-running challenges. Nevertheless, it should give investors more confidence in the company's turnaround prospects. It's also great news for General Motors (NYSE: GM), which is likely benefiting from similar tailwinds, but has fewer near-term problems to work through.
In the second quarter, Ford recorded a $1.9 billion adjusted operating loss, as revenue plunged 50% year over year primarily due to coronavirus-related production interruptions. This result was much better than the $5 billion-plus operating loss that management had braced for in the spring, but that hardly made it a successful quarter.
Source Fool.com
