Ford Achieves Strong Q3 Results, Raises Full-Year 2021 Guidance

By Joe Kucinski - October 27, 2021

Thanks to high demand for must-have new products, Ford Q3 results nearly double Wall Street’s earnings expectations.

Numbers can be fun. We all love to see horsepower figures, and 0 to 60 times for new products. Tow ratings are exciting and useful. And of course, pricing is always a key number to track. However, what we are talking about here is none of those things. But that doesn’t mean it is any less exciting if you are a Ford fan. Ford just released their Q3 results, and they absolutely crushed the Wall Street expectations. When we say crushed, we mean crushed. Earnings per share was expected to come in around 27 cents. However, the results were actually 51 cents per share. Ford nearly doubled what was expected.

Now earnings per share might not seem very thrilling to Ford fans at first but it points to what is happening at Ford. For one thing the demand for Ford products is amazingly strong. They have a strong portfolio of products and people want to buy them. “This is the most exciting Ford lineup I’ve seen, but what matters is that customers love our new products and services – and we’re just getting started,” said President and CEO Jim Farley. “The trajectory of our business gives us huge confidence in Ford+, and we’re obsessively turning the plan’s promise into reality.” Ford is also revised their projected earnings before interest and taxes for 2021. They increased the outlook from between $9 billion and $10 billion to between $10.5 billion and $11.5 billon.

Another positive you can take away from all of this is that the semiconductor shortage may be easing a bit. Third-quarter revenue of $35.7 billion was down moderately from the same quarter a year ago. However, it was significantly improved compared to the second quarter of 2021. It might not seem like it to folks waiting on their new Bronco, but Ford is able to begin shipping more product to customers. “Ford’s revenue, net income, adjusted earnings before interest and taxes, cash flow from operations, and adjusted free cash flow were all sharply higher from the second to the third quarter of 2021, driven by significant increases in semiconductor availability and wholesale vehicle shipments from Q2.”

The good news continues if you are a Ford shareholder. “Ford’s board of directors voted to reinstate a regular quarterly dividend starting in Q4. The fourth-quarter dividend of 10 cents per share on outstanding common and Class B stock will be paid on Dec. 1 to shareholders of record at the close of business on Nov. 19.” These are all great signs for the future of Ford and the products that they will offer. We are not a business journal here at Ford Truck Enthusiasts and we realize that earnings per share and dividends might not be thrilling. But it points to the underlying strength of the company and the Ford trucks that we all get to drive. It is the product that drives the profit. Ford makes good products, we buy them, they make money, and they make more good products. Everyone is happy.

Ford has invested and will be investing billions of dollars in new products and technology. These Q3 results are just the start of things to come. The investments are paying off for the company and for consumers. Ford is on the right track and while those of us on Main Street may have known it for a while, now Wall Street knows it as well.