Investors Are Underestimating Ford's Progress
Shares of Ford Motor (NYSE: F) fell more than 7% on Thursday, after the company released its second-quarter earnings report the previous afternoon. Investors seemed to be disappointed with its full-year forecast, which calls for adjusted earnings per share between $1.20 and $1.35, compared to $1.30 last year. Analysts had been expecting EPS of approximately $1.39.
However, a number of temporary factors are weighing on Ford's earnings power this year. These headwinds will start to abate in 2020, with further improvement coming in 2021. As a result, Ford is positioned for strong earnings growth over the next couple of years.
For the second quarter, Ford's adjusted operating profit was roughly flat year over year at $1.7 billion. Adjusted EPS crept up to $0.28 from $0.27 a year earlier, falling short of the average analyst estimate of $0.31. (On the other hand, adjusted free cash flow improved by $2 billion year over year, moving into positive territory at $0.2 billion.)
Quelle Fool.com
