The stock of Ford Motor Co. (F) is down 6% after the Detroit automaker issued forward guidance at the low end of its previously announced range.
The company reported earnings per share (EPS) of $0.49 U.S. for this year’s third quarter, which beat consensus estimates that called for $0.47 U.S.
Revenue in the period totaled $43.07 billion U.S., which was better than the $41.88 billion U.S. expected on Wall Street.
As for guidance, the vehicle manufacturer said that it now expects earnings for all of this year of $10 billion U.S. It had previously guided for earnings of $10 billion U.S. to $12 billion U.S.
Ford reiterated its forecast for adjusted free cash flow of between $7.5 billion U.S. and $8.5 billion U.S.
The company is struggling with soft consumer demand, rising vehicle inventory levels, and efforts to cut costs by $2 billion U.S. this year.
Ford is also dealing with high warranty costs, which led the company to miss Wall Street’s earnings expectations in the previous second quarter.
Management said that warranty costs in the third quarter were lower than a year ago after increasing by $800 million U.S. year-over-year during Q2.
Ford’s third-quarter results were led by its traditional operations, known as “Ford Blue,” that reported earnings of $1.63 billion U.S.
The electric vehicle unit recorded a loss of $1.22 billion U.S. during Q3 due largely to lower sales volumes as demand wanes among consumers.
Prior to today (Oct. 29), Ford’s stock had declined 7% this year to trade at $11.37 U.S. per share.
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