Ford beats Wall Street estimates, maintains 2021 guidance amid chip shortage
- Ford beat Wall Street’s expectations for the first quarter and maintained its 2021 guidance despite an ongoing semiconductor chip shortage.
- The company said it expects the chip shortage to decrease its earnings by $2.5 billion in 2020, which was the high-end of its previous guidance for the year.
DETROIT – Ford Motor beat Wall Street’s expectations for the first quarter and maintained its 2021 guidance despite an ongoing semiconductor chip shortage that has depleted vehicle inventories and caused the company to shutter some of its factories.
Here’s how Ford did compared with what Wall Street expected based on average estimates compiled by Refinitiv.
- Adjusted earnings: 89 cents versus an expected 21 cents
- Automotive revenue: $33.55 billion versus $32.23 billion
The company anticipates its full-year adjusted pretax profit to be between $5.5 billion and $6.5 billion, including an adverse effect of about $2.5 billion from the semiconductor issue. Adjusted free cash flow for the full year is projected to be $500 million to $1.5 billion.
The company had estimated it would earn between $8 billion and $9 billion in adjusted pretax profits. That didn’t factor in the shortage in semiconductor chips that it said could lower earnings by $1 billion to $2.5 billion this year.
The lower vehicle inventories and lack of production have led to higher profits per vehicle for automakers.
Shares of Ford were down nearly 3% during afterhours trading. The company’s market cap is more than $48 billion.
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Correction: Ford maintained its guidance for 2021. A previous version of the story misstated the guidance.