Ford earnings: Stock falling as automaker cuts 2024 guidance

American automaker Ford (F) topped its third quarter revenue estimates, posting a figure of $46.2 billion against expectations of $41.2 billion while adjusted earnings per share came in line with forecasts of $0.49. Ford shares continue to slip lower as the company's full-year revenue guidance is leaning toward the lower-end of its forecast.

Yahoo Finance senior autos reporter Pras Subramanian details the top takeaways from Ford's earnings print, highlighting how Ford is stacking up with rival automakers General Motors (GM) and Stellantis (STLA).

Morningstar US autos equity strategist David Whiston laid out to Yahoo Finance why GM continues to outperform Ford. Also catch S&P Global Ratings autos managing director Nishit Madlani's analysis of Ford's earnings and broader EV market trends.

To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.

This post was written by Luke Carberry Mogan.

Video Transcript

All right, we've got a little bonus one here for you today, Ford shares.

They're plunging seeing their biggest drop since July after the automaker guided to the lower end of its full year forecast in its third quarter earnings report out this week to discuss what's weighing on Ford.

We've got Yahoo Finance's very own pros, Subramanian pros.

What do we know?

Hey, Brad, so, you know, Ford, you know, they beat on, on revenue, they matched estimates on, on earnings with adjusted eps 49 cents a share, but it lowered that full year profit guidance, citing two reasons because of that, limiting their earnings, power warranty costs and supply chain issues.

Suppliers impacted by those hurricanes.

So that was sort of, uh, hurting their ability to create a production with their, their trucks means fully adjusted EIC went down to about $10 billion from their uh prior forecasts of 10 to 12 billion.

Uh, meanwhile GM is up to three times this year.

So that's sort of what they say to player.

And you're seeing that with Ford shares down, nearly 10% is Ford gonna be, be able to catch up.

You stack up their earnings against GM, you stack them up against Tesla, obviously the leader right now in the space.

I mean, ultimately, what do they, can they compete in the space?

Do you think longer term in longer term perhaps?

You know.

Right.

You know, I mentioned GM, they up their guidance three times now.

They're at, they're at around 14 to 15 billion to just at E bit for there.

That's almost 50% more than Ford.

I mean, they don't have that much more volume than Ford, but they're so much more profitable because the right product makes a good uh eight TPS or average transaction prices.

Like not that much in terms of incentivizing and then also they've maintained their supply.

So that's not so much, you're pushing so much to, to, to users right to, to buyers.

The land is in their hand.

Total mess revolving door with, with, with, with CEO level and C Suite executives.

Cars like the Jeep with their crown jewel and Dodge, I'm sorry, uh uh Ram pickups.

They're not selling that well.

And they have to discount heavily.

And I was gonna ask you, you know, t talk about uh selling this Dodge, how many cars do they have to offer?

How many, like how many models uh ST anti I'm gonna go with four.

Well, well, Dodge in particular has two, has two models.

The Hornet and, and also, yeah, the Hornet and the Durango Chrysler has one, the Pacifica Minivan so these brands are sort of almost dying here for Atlantis.

And then you mentioned Ford, they, they're a better strategy.

Well, the strategy might be to start getting rid of some of the brands for STIs and focus on Jeep and, and, and, and Ra M. But to back to Ford, they have the good, they have a good mix, they have good hybrids.

But the question is, can they, do they have a full product mix to compete against?

GM.

I don't think that they're quite there yet.

I mean, let's not forget they had the number one selling car, the pickup truck in the US for decades.

And so now it's just a, a shift of strategy and figuring out what's gonna woo consumers from this.

They don't have an entry level car like an equinox, right?

Um, they have trucks and suvs differentiating badger pro.

Thanks so much.