Shares of Ford Motor Co. are tumbling Thursday after the automaker's second-quarter adjusted profit badly missed Wall Street's expectations as it spent more money fixing customers’ cars and trucks.
Late Wednesday Ford reported an adjusted profit of 47 cents per share. That was far short of industry analysts’ estimates of 68 cents, according to FactSet.
Warranty costs have vexed the nation’s second-largest automaker for several years and lopped billions off of its profits. In the second quarter, warranty and recall costs totaled $2.3 billion, $800 million more than the first quarter and $700 million more than a year ago.
Ryan Brinkman of JPMorgan said in an analyst note that the weaker-than-expected quarterly profit was surprising, particularly when General Motors reported a strong performance a day earlier. Brinkman outpointed that warranty costs were the culprit at Ford, which were above his expectation for flat to lower costs sequentially.
“Ford management believes its initial quality on newly built vehicles has since improved, implying stronger-than-might appear current-period execution and lower future-period warranty expense, although we do not expect investors to give Ford a pass, including given the automaker has intermittently struggled with higher repair costs for coming on several years,” he wrote.
Shares slid nearly 17% in midday trading.
A motorist puts an electric 2024 Ford Mustang Mach-E through its paces on a test track at the Electrify Expo in The Yards Sunday, July 14, 2024, in north Denver. Ford reports earnings on Wednesday, July 24, 2024. (AP Photo/David Zalubowski)
Ford shares slide as disappointing Q2 adjusted profit rattles investors
Ford shares slide as disappointing Q2 adjusted profit rattles investors
MIAMI (AP) — Otto López was a triple shy of the cycle, Connor Norby homered and drove in three runs, and the Miami Marlins snapped NL East-leading Philadelphia’s six-game winning streak with a 9-5 victory over the Phillies on Saturday.
Jonah Bride also homered, while Xavier Edwards and Nick Fortes had two hits each for the Marlins, who had 14 hits a day after losing 16-2 to the Phillies.
John McMillon (2-1) pitched 1 1/3 innings of scoreless relief for the win.
Phillies starter Aaron Nola (12-7) was lifted after he allowed five runs and nine hits over 4 2/3 innings, walking two and striking out five. It was his shortest start since allowing eight runs and 11 hits in 3 1/3 innings against Boston on June 13.
Bride homered to lead off the fifth and put Miami ahead 5-3 and Jesús Sánchez added an RBI single in the sixth.
The Marlins padded their lead with a three-run seventh against former starter Taijuan Walker. López hit a solo homer over the center field wall in the inning and two runs scored on shortstop Trea Turner's throwing error.
Philadelphia's Kyle Schwarber hit a tying sacrifice fly in the third inning for his 93rd RBI of the season.
Norby hit a two-run homer in the first to put Miami ahead 2-1.
Marlins starter Darren McCaughan allowed three runs and six hits in 4 2/3 innings. The right-hander struck out four.
TRAINER’S ROOM
Phillies: Manager Rob Thomson said catcher J.T. Realmuto has some swelling but will remain with the club as he recovers from a left knee contusion sustained Friday. The Phillies selected the contract of catcher Aramis Garcia from Triple-A Lehigh Valley and designated RHP Nick Nelson for assignment.
Marlins: Placed RHP Max Meyer (right shoulder bursitis) and RHP Calvin Faucher (right shoulder impingement) on the 15-day injured list and OF Derek Hill (right shoulder impingement) on the 10-day injured list. ... LHP Andrew Nardi (left elbow muscle) was transferred to the 60-day injured list.
UP NEXT
RHP Seth Johnson will make his major league debut when he starts the series finale for the Phillies on Sunday. The Marlins have not announced a starter but manager Skip Schumaker said RHP Edward Cabrera could get the nod when he cleared all tests after he withdrew from his scheduled start Friday because of migraine-like symptoms.
AP MLB: https://apnews.com/MLB
Miami Marlins starting pitcher Darren McCaughan (68) aims a pitch during the first inning of a baseball game against the Philadelphia Phillies, Saturday, Sept. 7, 2024, in Miami. (AP Photo/Marta Lavandier)
Philadelphia Phillies' Bryson Stott (5) hits a single during the first inning of a baseball game against the Miami Marlins, Saturday, Sept. 7, 2024, in Miami. (AP Photo/Marta Lavandier)
Philadelphia Phillies' Kyle Schwarber (12) slides into second base as Miami Marlins second baseman Otto Lopez (61) is late with the tag during the first inning of a baseball game, Saturday, Sept. 7, 2024, in Miami. (AP Photo/Marta Lavandier)
of a baseball game, Saturday, Sept. 7, 2024, in Miami. (AP Photo/Marta Lavandier)
Miami Marlins' Connor Norby is congratulated by his teammates after hitting a two-run home run during the first inning of a baseball game against the Philadelphia Phillies, Saturday, Sept. 7, 2024, in Miami. (AP Photo/Marta Lavandier)
