Ford Stock Jumps on Earnings Beat, Dividend Raise

  • Ford (F) reported a strong Q2 earnings beat yesterday.
  • Moreover, Ford reiterated its outlook and raised its dividend to 15 cents per share.
  • Ford stock rallied in early-morning trading.
Ford stock - Ford Stock Jumps on Earnings Beat, Dividend Raise

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Classic automaker Ford (NYSE:F) is having a challenging year but a great week. Yesterday, the company released its second-quarter 2022 earnings results. Wall Street seems glad that Ford posted strong sales numbers, reiterated its outlook and hiked its dividend. This morning, Ford stock gapped up several percentage points.

As the company put it, Ford leveraged “strong demand for must-have vehicles into strong results” despite high inflation and supply chain disruptions. Ford managed to generate $37.91 billion in revenue during Q2 2022, up from $24.13 billion in the year-earlier quarter. Analysts were only anticipating $34.32 billion, so this was a top-line beat.

What about the bottom-line results? No problem there, as Ford reported quarterly adjusted earnings per share of 68 cents, a huge improvement over the 12 cents from the year-earlier quarter. Plus, this also beat the Street as the analysts only expected 45 cents per share.

And by the way, Ford’s revenue growth isn’t only sourced from vehicle sales. Ford Pro’s paid telematics subscriptions reportedly increased 40% sequentially in both 2022’s first quarter and its second quarter.

What’s Happening With Ford Stock?

Even while the S&P 500 wobbled this morning, Ford stock was easily in the green. It might not be much longer before the buyers are threatening the crucial $15 level.

To sweeten the deal, Ford just declared a third-quarter regular dividend of 15 cents per share. This is a milestone moment, really, as it’s the dividend Ford paid prior the onset of the Covid-19 pandemic

Looking ahead, Ford’s outlook for full-year 2022 didn’t change. The company still expects to report adjusted earnings before interest and taxes (or EBIT) of $11.5 billion to $12.5 billion. This would represent 15% to 25% compared to last year’s result. Moreover, Ford continues to model 10% to 15% growth in vehicle wholesales from 2021 to 2022.

All around, Ford posted data and guidance that demonstrates growth and confidence. So, even while the broader market is shaky today, it appears that traders are willing to give Ford stock a test drive.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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