It seems only yesterday that we were lauding Tesla as the greatest company that has ever existed in any universe or reality.
Actually, it was only yesterday, but we humans are a short-sighted bunch, and Ford’s (NYSE: F) earnings last night has given Wall Street food for thought.
How did Ford do in Q3?
In the wise words of Larry David:
“Pretty, pretty, pretty… pretty good.”
Better than good, in fact, as the legacy carmaker almost doubled earnings estimates. With everyone expecting Ford to succumb to the ubiquitous troubles of semiconductor shortages, many were shocked to see its earnings per share come in at $0.51 versus $0.27 expected. Meanwhile, revenue came in at $33.21 billion versus $32.54 billion expected.
That’s not all! Ford also increased its full-year earnings guidance yet again to between $10.5 billion and $11.5 billion, up from between $9 billion and $10 billion. And, if ever a sign was needed that things were getting back to normal, Ford is also reinstating its regular dividend in Q4, almost two years after suspending it.
Some more bullish facts to throw in include:
- Ford remains Europe’s number one commercial brand.
- Luxury sales in China rose 24% year-over-year.
- Estimates that sales of the Ford Mustang Mach-E electric vehicle offering could reach 200,000 annually, based on current demand.
All sounds pretty good, right?
Sure, but let’s not get ahead of ourselves. Ford has been through the wringer due to COVID, and it’s still got a long way to go to catch up with Tesla and other competitors in the EV space. It will be investing billions of dollars and hours of R&D, so don’t expect this company to be a Tesla-killer overnight.
Editor at MyWallSt
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.