Ford stock dropped after revenue and profit missed Wall Street forecasts

Ford (NYSE:F) stock crashed more than 10% lower in Wednesday’s ‘afterhours’ trade, after quarterly results that the market evidently took to be dismal.

Ford pointed to the impact of persistent warranty issues, as its reason for the drop in its profitability.

Revenue for the quarter came in at $47.8 billion, shy of Wall Street’s consensus forecast of $48.09 billion.

Earnings per share was, meanwhile, significantly below expectations reported at 47 cents, versus 68 cents.

The carmaker revealed a 26% drop in operating profit to $2.8 billion compared to $3.8 billion this time a year ago.

The company is still sticking with full-year earnings guidance, which pitches earnings (adjusted EBITDA) between $10 billion and $12 billion.

Chief executive Jim Farley, meanwhile, highlighted talked up the Ford+ commercial strategy – which the company describes as giving its customers ‘freedom of choice’ between gasoline, hybrid, and electric based propulsion.

According to Ford, it was currently America’s ‘No 1’ brand for gas, ‘No 2’ for electric and ‘No 3’ for hybrid vehicles.

The company is becoming ‘more strategically and financially durable’, he noted in Ford’s results statement, and he claimed that its ‘disciplined capital allocation setting the table for profitable long-term growth’.

Farley commented: “Ford+ is on track, our underlying quality is improving, and Ford Pro is showing the huge upside we’ve got in all our businesses

“Transparency and accountability from having separate teams focused on the needs of different customers are leading to better decisions and greater value for everyone.”

In ‘afterhours’ trading, Ford stock gave up $1.44 or 10.3% priced at $12.27.

Earlier, Ford closed Wednesday’s regular trading session at $13.67, down 1.16% for the day.