Ford Motor Company (NYSE: F) slid roughly 5.0% in extended trading after the legacy automaker said costs in its current financial quarter will be significantly higher than its previous estimate.
What will drive the additional cost?
The car manufacturer warned of an extra $1.0 billion in inflation-related supplier costs. Up to 45,000 vehicles, it added, were not delivered this quarter due to parts shortage.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
The supply shortages will result in a higher-than-planned number of vehicles on wheels built but remaining in Ford’s inventory awaiting needed parts, at the end of the third quarter.
Ford Motor now expects these vehicles, mostly high-margin SUVs and Trucks, to reach dealers in Q4. It, however, left its guidance for $11.5 billion to $12.5 billion in full year adjusted EBIT unchanged this evening.
Wall Street recommends that you buy Ford shares as they have upside to $16.61 on average.
When is Ford reporting its Q3 results?
In July, Ford reported market-beating results for its second financial quarter. The next quarterly update is expected on October 26th when it will offer further insight into what it expects for fiscal 2022 as a whole.
For the current quarter, it forecasts $1.40 billion to $1.70 billion in earnings before interests and taxes on an adjusted basis. The announcement arrives more than a month after rival General Motors issues a similar warning as well.
Last week, Ford revealed the 7th generation of its iconic Mustang sports car. The stock is currently down more than 40% for the year.
eToro review
10/10
68% of retail CFD accounts lose money
Source: https://invezz.com/news/2022/09/20/ford-warns-of-higher-costs-in-q3/