Ford Gains 3.8% on Outstanding Q2 Results; Raises Guidance

Shares of global automobile firm Ford Motor (F) surged 3.8% in extended trading hours after the company reported outstanding financial results for the second quarter of 2021. The Michigan-based company manufactures and sells luxury cars, commercial vehicles and automobile parts.

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Adjusted earnings per share (EPS) came in at $0.13, compared to a loss of $0.35 per share in the second quarter of 2020. The Street expected Ford to report a loss of $0.10 per share. Total revenues increased to $26.8 billion from $19.4 billion in the year-ago quarter, beating analysts’ expectations of $23.84 billion.

Automotive revenues rose to $24.1 billion from $16.6 billion in the second quarter of last year; Ford Credit revenues totaled $2.6 billion, down from $2.7 billion; and Mobility revenues grew to $21 million from $7 million. (See Ford stock chart on TipRanks)

Following the second-quarter results, the company raised its adjusted EBIT (earnings before interest and tax) outlook for 2021 to between $9 billion and $10 billion. Furthermore, volume is projected to rise by around 30% from the first to the second half of the year. Ford has also lifted its full-year adjusted free cash flow guidance to $4 billion-$5 billion.

On July 14, RBC Capital analyst Joseph Spak maintained a Buy rating on the stock with a price target of $17 (22.7% upside potential). The analyst expects the company to report EPS of $0.82 in the third quarter.

Overall, the stock has a Moderate Buy consensus based on 8 Buys, 5 Holds and 1 Sell. The average Ford Motor price target of $15.79 implies nearly 14% upside potential. Shares of the company have gained 100.3% over the past year.

According to TipRanks’ Smart Score rating system, Ford scores a 9 out of 10, suggesting that the stock is likely to outperform market averages.