Ford Rewards Its Investors

By Douglas A. McIntyre Updated Sep 19, 12:58PM EDT · Published Jul 28, 6:53AM EDT

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Ford Rewards Its Investors — © Ford Motor Co.

Ford Motor Company posted much better-than-expected numbers for its most recent quarter. And, it explained why its future is bright. Investors cheered the results. Based on comments about expenses, many of Ford’s employees did not.

Revenue rose to $40.2 billion from $26.8 billion in the year ago period. Net income increased to $667 million from $561 million. CFO John Lawler said “Ford’s outlook for full-year 2022 financial performance has not changed: adjusted EBIT of $11.5 billion to $12.5 billion, which would represent 15% to 25% growth from last year, and adjusted free cash flow of $5.5 billion to $6.5 billion.”

The company’s stock, which has been in a rut for months, rose a few percentage points after hours. In premarket trading, the shares stood at $13.93.

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Another announcement that should cheer investors was that Ford’s board raised its quarterly dividend to $0.15 a quarter from 0.10. The move helps the Ford family considerably, but the benefit reached all of Ford’s investors.

Ford management hinted strongly that its expenses were too high. This seems to confirm earlier reports of planned layoffs.

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Ford needed the success, and its produced. The quarters ahead will be defined by its ability to get a yield from the billions of dollars it has invested in electric vehicles. The plan has already produced some success. Ford has launched an EV version of its most successful product. The Ford F-150 Lightning has been released into a market of millions of people who already own a gas powered F-150. An EV has never been placed into such a ready consumer base.

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The future that Ford has trumpeted is here, and appears ready to look even better.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.