Ford Motor on late Monday revealed third-quarter results that exceeded market expectations, although its electric vehicle business faced pricing pressures and declining sales volumes. Adjusted earnings increased to $0.49 per share for the three-month period ending on September 30, up from $0.39 a year prior.
The consensus estimate was normalized EPS of $0.47, as per Capital IQ. Revenue, excluding the company's Ford Credit financial services, rose to $43.07 billion from $41.18 billion, surpassing Wall Street's forecast of $42.32 billion. The automaker's total revenue experienced a year-over-year increase of 5%, reaching $46.2 billion.
However, sales in the company's electric vehicle segment plummeted by 33% due to industry-wide pricing pressures, while market dynamics caused an 11% decrease in volumes. Conversely, sales in the Ford Pro and Ford Blue divisions increased by 13% and 3%, respectively. Looking ahead, Ford anticipates consolidated adjusted earnings before interest and tax of $10 billion for 2024, which is at the lower end of its previous guidance range of $10 billion to $12 billion.
The company has also maintained its projected adjusted free cash flow outlook, estimating it will range from $7.5 billion to $8.5 billion. Following the report, shares experienced a decline of 5.1% in after-hours trading..