Ford is up 5% after announcing its second quarter financials

Ford (NYSE: F) shares rose 5% after the leading auto manufacturer announced better-than-expected second-quarter financial for the 2022 financial year.

Ford beats analyst consensus 

Ford reported an adjusted EPS of $0.68 in the second quarter, topping the $0.45 per share analyst estimate and beating the $0.13 it recorded in the same quarter of the previous fiscal year. The company brought in total revenue of about $40.19 billion in the same quarter, also thrashing the $37.05 billion consensus estimate.

For the full year, the car manufacturer forecasts recording and adjusted EBIT of between $11.5 to $12.5 billion, again beating the $11.15 billion consensus projection. Ford also expects full-year adjusted free cash flow results of between $5.5 to $6.5 billion. The company said that vehicle shipment in China in the second quarter dropped because of COVID-19 lockdown restrictions.

Analyst comments and estimates 

Adam Jonas, a financial analyst at Morgan Stanley saw what he dubbed a big beat from the company, but he remains Equal Weight-rated even though he sees an attractive valuation.

Mr. Jonas told clients:

Ryan Brinkmann, an analyst at JPMorgan, maintained a price target of $19 per share of F stock and his Overweight rating after the so-called “big beat”.

Mr. Brinkmann said:

He added that while macro risks rose significantly since Ford reported its first-quarter earnings, pent-up retail demands due to softer vehicle productions the company experienced in the last 3 years will help offset some of the protracted downturns.