Shares of the automotive giant Ford (F +11.95%) were speeding higher today after the company reported earnings and automotive revenue that beat Wall Street's consensus estimates in the third quarter and on news that an aluminum supplier Ford relies on will have its plant up and running faster than expected, following a recent fire.
Ford's stock was up by 10.5% as of 11:26 a.m. ET.
Image source: Ford.
Better-than-expected news on several fronts
Ford reported non-GAAP (adjusted) earnings per share of $0.45 for the third, which easily beat analysts' consensus estimate of $0.36. The company's automotive revenue of $47.1 billion also topped estimates of $43 billion for the quarter.
Investors were happy to see these better-than-expected results and they got another boost of optimism when WSJ reported last night that the company's main aluminum supplier, Novelis, will have a factory up and running faster than expected, after being damaged by a fire.
The Novelis fire impacted Ford's pickup truck and SUV production and resulted in an adjusted earnings before interest and taxes (EBIT) headwind of $1.5 billion to $2 billion for Ford. The automaker said it will hire 1,000 additional workers to boost production to help offset the loss. But the recent report that Novelis will open its damaged plant by the end of this year, instead of in early 2026 as previously announced, could help Ford get production back on track faster.
NYSE: F
Key Data Points
Looking around the bend
Ford lowered its 2025 EBIT guidance to a range of $6 billion to $6.5 billion, down from its previous estimate of between $6.5 billion to $7.5 billion. But investors are mostly looking past the downward revision because the change came as a result of the Novelis fire, and not underlying issues with Ford's business.
With automotive sales and earnings higher than estimated and the Novelis plant coming back online faster than expected, Ford investors are right to be excited today.
