What to Expect From Ford $F Earnings This Week

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Ford Beats:

EPS: 56 cents per share adjusted vs. 43 cents expected, according to Thomson Reuters
Revenue: $39.9 billion vs. $37.1 billion expected, according to Thomson Reuters

Ford second-quarter net income of $2 billion was flat with the year ago period. On a per share basis, net earnings rose to 51 cents from 49 cents. On an adjusted basis, Ford earned 56 cents a share,

Raised Guidance

Ford raised its full-year earnings forecast to a range of $1.65 to $1.85 a share, on an adjusted basis. However the improved outlook was also helped by the more favorable tax rate.

Ford said the company’s tax rate would be about 15 percent for this year, but would return to roughly 30 percent next year. In 2016, the company’s tax rate was about 31.9 percent.

Sales

Ford’s F-Series trucks had best second-quarter sales performance since 2001, gaining 7 percent over last year.

Luxury Lincoln brand performed well in both the U.S. and China. Lincoln sold more than 29,000 vehicles in the U.S., its best performance in a decade. In China, Lincoln sales rose a record 84 percent.

“This quarter shows the underlying health of our company with strong products like F-Series and commercial vehicles around the world, but we have opportunity to deliver even more,” said recently appointed CEO Jim Hackett. “The entire team is focused on improving the fitness of the business and smartly deploying our capital to improve both the top and bottom lines in the quarters ahead.”

Ford Credit

Pretax profit for Ford Credit was $619 million, a 55 percent increase over the same quarter last year.

The company reported lower adjusted pretax profit of $2.5 billion, versus $3 billion in the same quarter last year, citing factors such as higher steel costs, unfavorable exchange rates.

Average transaction prices rose nearly five times the industry average and incentives declined as a percentage of vehicle prices, even though incentives increased for the industry overall, the company said in a statement.

Ford Motor Company NYSE: F – Jul 27, 11:56 AM EDT 11.11 +0.05 (+ 0.45%)