=Ford Motor (F) reported earnings on Wed 23 Oct 19 (a/h)

Ford Motor beats by $0.08, reports revs in-line; lowers top end of FY19 EPS guidance due to Q4 headwinds

Reports Q3 (Sep) earnings of $0.34 per share, excluding non-recurring items, $0.08 better than the S&P Capital IQ Consensus of $0.26; revenues (automotive only) fell 2.1% year/year to $33.93 bln vs the $33.88 bln S&P Capital IQ Consensus.

• Adjusted EBIT margin in Q3 was 4.8%, up from 4.4% last year.

Co issues in-line guidance for FY19, sees EPS of $1.20-1.32, excluding non-recurring items, vs. $1.26 S&P Capital IQ Consensus and vs prior guidance of $1.20-1.35.

Co continues to expect lower full-year structural costs in its Automotive business, excluding pensions and other post-employment benefits, and sustained strength in Ford Credit. The company still anticipates full-year growth in adjusted free cash flow, its most important financial measure, driven by Automotive.

However, Q4 headwinds (higher warranty costs, higher than planned incentives in North America, and lower volumes in China) have intensified since Ford last gave financial guidance for 2019. As a result, Ford is lowering its guidance for full-year company adjusted EBIT to between $6.5-7.0 bln.