Ford F earnings Q2 2022

Ford Motor Company will report its second-quarter earnings shortly after the U.S. markets close today.

Here’s what Wall Street is expecting.

• Adjusted earnings per share: $0.45, according to Refinitiv estimates.
• Automotive revenue: $34.30 billion, according to Refinitiv estimates.

Both would be significant improvements from Ford’s results in the second quarter of 2021, when it reported adjusted EPS of just $0.13 on automotive revenue of $24.13 billion amid supply-chain disruptions that had forced extended shutdowns of its assembly lines.

Both would also represent incremental gains from last quarter, when Ford generated adjusted EPS of $0.38 on automotive revenue of $32.1 billion.

Ford’s U.S. sales were up 1.8% in the second quarter from a year ago, powered by an 8% year-over-year increase in sales of Ford-brand SUVs and crossovers as the company was able to build more of the popular models for its U.S. dealers. That could be good news for the company’s profit margins, as those incremental SUV sales largely replaced sales of Ford’s now-discontinued, and less-profitable, car models.

China could weigh on the company’s results. Ford, like other automakers, was hit hard by Covid-related disruptions in the world’s largest new-car market. Ford’s China sales were down 22% in the second quarter, to about 120,000 vehicles, amid extended government-mandated shutdowns near Shanghai and in other parts of eastern China.

Investors may be more focused on Ford’s future, however. The company is in the midst of a major restructuring, devoting more resources to electric vehicles and trimming $3 billion in annual costs from its internal-combustion development efforts.

Ford said last week that it has secured 100% of the battery supplies it will need to deliver electric vehicles at a rate of 600,000 per year by the end of 2023, and that it’s on track to build 2 million a year by 2026. But it has yet to share more details about the organizational changes it plans to make on the internal-combustion side, moves that could put thousands of U.S. jobs at risk.