Ford Easily Beats Wall Street on Earnings

Ford Motor easily beat expectations on Wall Street on Thursday driven for the most part by reductions in costs.

The automaker announced it has been cutting costs across several of its departments. Costs also were comparably lower for the quarter due to Ford suffering a huge recall of vehicles during the same quarter one year ago.

Ford in 2016 recalled over 2.4 million of its vehicles spanning a number of models including Focus, Mustang and others.

Shares of the automaker were up close to 2% in trading before the opening bell on Thursday.

Net earnings per share at Ford rose ending the quarter at 39 cents, an increase of 15 cents compared to the same quarter in 2016.

Adjusted earnings for its third quarter were 43 cents per share outpacing expectations on Wall Street of 26 cents per share.

Ford posted revenue of $36.5 billion, which beat expectations by analysts of more than $32.8 billion.

Net income for the automaker reached $1.6 billion in comparison to just over $1 billion for the same three-month period during 2016.

Strong performance for North America and a record profit before taxes in Asia helped drive the automotive profits said Ford in a prepared statement Thursday.

Ford’s adjusted profit before taxes of just over $2 billion was more than $548 million higher than last year’s same quarter, driven by market factors and favorable costs, said the automaker.

CFO Bob Shanks said to investors that Ford has created value, has had a strong run of seven years and this year will be another strong year.

Ford, said Shanks, was improving fiscal health as the industry continues forward with new technologies like autonomous and electric vehicles. Ford is planning to bring out an autonomous vehicle by 2021 to the market and during 2020 an electric one.

Guidance for adjusted earnings per share was released by Ford for the full year of between $1.75 and $1.85.

The average price of each transaction was higher by over twice the average for the industry in the U.S., while incentives dropped.

Since hiring Jim Hackett as CEO, Ford has been cutting its costs and shuffling senior leadership. Shares for the No. 2 automaker in the U.S. have not budged much since the start of 2017, while shares of its biggest rival General Motors increased by nearly 30%. Shares of electric car maker Tesla have increased during the same period by over 50%.

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