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Ford exceeds Wall Avenue revenue expectations after factories with corona virus shutters shut down

Visitors walk past a Ford Escape Titanium at the Shanghai Auto Show in Shanghai on April 17, 2019.

Greg Baker | AFP | Getty Images

Ford Motor fared far better than Wall Street expected and even exceeded its own expectations as the corona virus caused its factories to shutdown worldwide in the second quarter.

This is Ford's performance compared to Wall Street's expectations, based on refinitive estimates from the average analyst.

Adjusted earnings per share: a loss of 35 cents per share versus an expected loss of $ 1.17 per share. Automotive sales: $ 16.6 billion expected, compared to $ 15.95 billion.

Ford's shares rose more than 4% on Thursday after close of trading. The stock closed at $ 6.74, down 2.6%.

Ford reported an adjusted pre-tax loss of $ 1.9 billion – more than $ 3 billion better than expected.

Tim Stone, Ford's CFO, warned investors in April that the company was likely to lose more than $ 5 billion in adjusted second-quarter tax due to the fact that the pandemic had closed factories and severely hindered car sales.

Analysts and investors observed whether Ford would be able to offset the expected losses as US consumer demand was stronger than expected, especially for rugged trucks and SUVs. The company resumed normal shifts at domestic plants a month earlier than planned.

Wall Street also monitors how much cash Ford burned in the quarter, as well as notes on debt repayment or updates to a $ 11 billion restructuring plan led by Ford CEO and President Jim Hackett.

"They have a lot of money. They certainly won't run out of money this year," David Morningstar analyst David Whiston told CNBC. "Ford's problem, as you said in your own words, is that you are not physically fit."

General Motors, which reported its second-quarter profit on Wednesday, said it had lost an adjusted $ 536 million, better than Wall Street had expected. Unadjusted, the company lost $ 806 million and spent $ 7.8 billion in cash in the quarter.

In the first quarter, Ford lost $ 2 billion and spent $ 2.2 billion in cash.

Both Ford and GM doubled their automotive debt to $ 30 billion in the first quarter to bolster their balance sheets and weather the Covid crisis.

GM said Wednesday that it is expecting to repay a $ 16 billion revolving credit facility that was drawn in March through the end of the year.

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