Ford Stock Soars as Strong Results Outweigh Outlook Cut

Kyle Grillot / Bloomberg / Getty Images Ford was the best-performing stock in the S&P 500 Friday morning.

Key Takeaways

Ford shares surged Friday after the automaker posted quarterly earnings that topped analysts' estimates. However, Ford cut its outlook, citing the impacts of a fire at an aluminum supplier.

Investors were so impressed by Ford Motor's third-quarter results that they overlooked a guidance cut.

Ford (F) shares soared over 10% to pace the S&P 500 in recent trading after the "Big Three" automaker reported adjusted earnings of $0.45 per share on revenue that surged 9% year-over-year to $50.53 billion. Analysts surveyed by Visible Alpha had expected $0.34 and $46.33 billion, respectively.

However, Ford said it expects a full-year "adjusted EBIT headwind of $1.5 billion to $2 billion and an adjusted free cash flow headwind of about $2 billion to $3 billion in the fourth quarter due to the Novelis fire," which shut down an aluminum supplier's plant in Oswego, N.Y.

Why This Is Significant

Friday's stock gains point to investor confidence in Ford's results and longer-term trajectory despite the cut to the automaker's outlook, adding to what has already been a strong year for the stock heading into today's session.

Because of the fire, Ford cut its 2025 adjusted EBIT outlook to a range of $6 billion to $6.5 billion from the prior $6.5 billion to $7.5 billion, and adjusted free cash flow of $2 billion to $3 billion from the previous $3.5 billion to $4.5 billion.

"We are working intensively with Novelis and others to source aluminum that can be processed in the cold rolling section of the plant that remains operational while also working to restore overall plant production," Ford CEO Jim Farley said. "We have made substantial progress in a short time to minimize the impact in 2025 and recover production in 2026."

With Friday's gains, Ford shares have risen nearly 40% since the start of the year.

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