Ford Motor’s Shares Tumbled Thursday After Disappointing Fourth-Quarter Earnings

Feb 4, 2022 By MarketDepth

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Ford Motor’s (NYSE: F) shares tumbled Thursday after it reported disappointing fourth-quarter earnings. The earnings miss comes amid the global semiconductor shortage and the consequences it has unleashed on the production of vehicles. Shares fell 6% during after-hours trading Thursday following the news.

Revenue Lower Than Expected

The legacy automaker reported earnings of USD0.26 per share, compared to the expected USD0.45 a share. Revenue amounted to USD35.3 Billion, slightly below analysts anticipated USD35.5 Billion.

Supply Chain Shortages

According to CFO John Lawler, despite all the challenges presented, the company was able to maneuver supply chain shortages throughout the quarter.

“Our team did a fantastic job working with partners to maximize component availability. We allocated those volumes to in-demand new vehicles like the Bronco (SUV) and Maverick (small pickup), profitable models like F-Series (trucks) and Transit, and customer orders.”

CFO John Lawler

Additionally, Ford disclosed that it had been able to lock in USD17.9 Billion in profit on USD136.3 Billion in revenue during 2021. Much higher than the USD1.3 Billion loss on USD127.1 Billion it experienced in revenue within 2020.

“Financial performance is obviously critical. We’re also proud that customers see how Ford is taking EVs mainstream, and have already ordered or reserved more than 275,000 all-electric Mustang Mach-E SUVs, F-150 Lightning pickups and E-Transit commercial vehicles — and we’re breaking constraints to deliver every one of them as fast as we can.”

CEO Jim Farley