Ford Motor Company (NYSE:F) stock dropped over 10% in after-hours trading Wednesday following a disappointing second-quarter earnings report.
The automaker's adjusted earnings per share (EPS) came in at $0.47, falling 31% short of the $0.67 consensus estimate, with warranty issues cited as a primary factor for the earnings miss.
Additionally, automotive revenue was $44 billion, below the expected $44.8 billion.
Ford also announced there would be no growth in 2024, further unsettling investors. The company plans to implement $2 billion in cost reductions, though specifics on these cuts were not provided.
Despite improved operational and quality metrics, including a significant rise in J.D. Power's quality rankings, the market's reaction reflects deep concerns over Ford's short-term outlook and strategic challenges.
CEO Jim Farley emphasized Ford's focus on quality improvements and strategic initiatives, but investor confidence remains shaky.
"Ford+ is on track, our underlying quality is improving, and Ford Pro is showing the huge upside we’ve got in all our businesses,” Farley said in a statement.
“Transparency and accountability from having separate teams focused on the needs of different customers are leading to better decisions and greater value for everyone.”