Automaker Ford shattered Wall Street’s earnings expectations on Wednesday, nearly doubling what was expected.
The company’s results were so good that it led to an increase in annual guidance for the second time in 2021.
For the third quarter Ford reported adjusted EPS of 51 cents compared to just 27 cents expected. Automotive revenue came in at $33.21 billion compared to $32.54 billion expected.
The company said that increased availability of semiconductor chips and higher vehicle shipments in the third quarter enabled it to post higher-than-expected results.
Shares were exploding over 9% in extended hours after closing down 2.7%.
Looking ahead the company has now guided for full year adjusted earnings guidance between $10.5 billion and $11.5 billion. This is up from between $9 billion and $10 billion. Ford maintained its expectations for adjusted free cash flow of between $4 billion and $5 billion.
The company also said it would reinstate its regular dividend starting in the fourth quarter, more than a year and a half after suspending the payments during the early days of the coronavirus pandemic.
“The results are showing, really, the underlying strength of our business,” Ford CFO John Lawler told reporters Wednesday during a call.
The company has cited strong demand for newer products such as the Bronco SUV and Mustang Mach-E, which the company said could reach 200,000 units in sales globally a year.
“I believe we have the right plan to drive growth and unlock unprecedented value,” Ford CEO Jim Farley said on the call. “You’re already seeing favorable change in the slope of our earnings and cash flow. There’s more to come.”
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.