Ford shares jump more than 8 percent on strong earnings

Ford shares jump more than 8 percent on strong earnings 105530009 1540471344094gettyimages 1013288432

Jeff Kowalsky | AFP | Getty Images

Jim Hackett, president and chief executive officer, Ford Motor stands outside the headquarters as they celebrate the production of the 10,000,000 Mustang on August 8, 2018 in Dearborn, Michigan. 

Ford shares were up more than 8 percent Thursday after the company delivered better-than-expected earnings Wednesday night.

Investors seemed encouraged by CEO Jim Hackett’s pledge to share more details of his plans to restructure the company and improve efficiency.

Ford is going to host several events in the “coming weeks and months” where it will share more information about Hackett’s $11 billion turnaround plans. Hackett has spoken extensively of the need to improve the company’s “fitness,” or efficiency, but investors have at times expressed frustration at what they say is a lack of clarity and transparency on Ford’s part.

The automaker’s shares have fallen roughly 30 percent since the beginning of the year.

It seems that Mr. Hackett understands that the Street needs more information to gain comfort with his plan, and as such he hinted that there are a number of investor events planned for the near future,” said RBC analyst Joseph Spak in a note published Thursday.

Ford’s third-quarter results were solid, despite the fact that some key metrics were down from the same quarter last year, analysts said. Strong sales of trucks in North America helped offset declining sales of passenger cars, higher materials costs and difficulties in China.

“The results really show an enhanced focus on North America, and a focus on trucks and SUVs,” CFRA analyst Garrett Nelson told CNBC. Nelson was surprised the automaker maintained its full-year earnings guidance of $1.30 to $1.50 per share, and said he expects earnings to come in at the low end of that range.

Ford still faces challenges on numerous fronts, including risks from rising materials costs, threats to both supplies and sales from new tariffs, and struggling international businesses.

WATCH:Ford is using bionic suits to help employees work safer

Source : CNBC

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