Ford (F) earnings Q2 2020


Jim Hackett of Ford Motor speaks at an event during the 2018 North American International Auto Show (NAIAS) on January 14, 2018 in Detroit, Michigan, US.

Andrew Harrer | Bloomberg Getty Images

Ford Motor fared far better than Wall Street had expected, even beating its own expectations as Coronovirus shut down rolling out of its plants worldwide during the second quarter.

Here’s how Ford expected Wall Street based on average analyst estimates compiled by Refinitive.

  • Adjusted EPS: A loss of $ 1.17 per share vs. a loss of 35 cents is expected.
  • Automotive revenue: $ 16.6 billion vs. $ 15.95 billion expected.

Ford shares soared more than 4% during Thursday’s trading. The stock closed down 2.6% at $ 6.74.

Ford reported adjusted pretax losses of $ 1.9 billion – $ 3 billion better than expected.

Ford CFO Tim Stone warned investors in April that the company closed the Epidemic factory during the second quarter and lost more than $ 5 billion on an adjusted premix basis as auto sales were severely hampered. .

Analysts and investors are looking to see if Ford was able to reverse those expected losses as consumer demand in the US was anticipated to be strong, especially for rugged trucks and SUVs. The company resumed normal shift operations at domestic plants a month ahead of schedule.

Wall Street is also looking at how much money Ford burned for the $ 11 billion restructuring plan led by Ford CEO and President Jim Hackett this quarter, as well as any guidance about debt or updates.

“They’ve got a ton of cash. They definitely won’t run out of money this year,” Morningstar analyst David Whiston told CNBC. “Ford’s problem, as he has stated in his words, is that he is not physically fit.”

General Motors, which reported its second-quarter earnings on Wednesday, said it made a $ 536 million loss on an adjusted basis, better than Wall Street had expected. On an unfair basis, the company incurred a loss of $ 806 million and was burnt with cash of $ 7.8 billion during the quarter.

During the first quarter, Ford lost $ 2 billion and burned $ 2.2 billion in cash.

Ford and GM both doubled their automotive debt by $ 30 billion during the first quarter to help consolidate their balance sheets and tackle the Kovid crisis.

GM said on Wednesday that it expects to repay the $ 16 billion revolving credit line, which will expire by the end of March.

This is breaking news. Please check back for updates.

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