Ford Motor Co. CEO Jim Farley walks to speak at a news conference at the Rouge Complex in Dearborn, Michigan, September 17, 2020.
Rebecca Cook | Reuters
DETROIT – Ford Motor is expected Wednesday to report a slight loss for the second quarter as the semiconductor chip shortage causes significant production cuts and low vehicle inventories.
Here’s what Wall Street expects, based on average analysts’ estimates compiled by Refinitiv.
- Adjusted results: a loss of 3 cents a share
- Automotive revenue: $24.25 billion
Ford last month said its adjusted pretax earnings for the second quarter would top its expectations and be “significantly better than a year earlier,” while net income would be “substantially lower” than the same period last year.
The company reported a net profit of $1.1 billion and an adjusted pretax loss of $1.9 billion during the second quarter of 2020.
In April, Ford forecasted its adjusted pretax profit for the year to range from $5.5 billion to $6.5 billion, including an adverse effect of about $2.5 billion from the semiconductor shortage. That impact was the high end of a previously guided loss due to the problem.
Outside of Ford’s earnings and any change to guidance, Wall Street analysts will be looking for updates on CEO Jim Farley’s Ford+ turnaround plan, the semiconductor chip shortage and new product launches.
Shares of Ford have more than doubled since Jim Farley became CEO in October, including a more than 50% jump so far this year.
Source : CNBC
