Why Ford Stock Shifted into a Higher Gear Today

Core Viewpoint - Ford's shares surged by 10.5% following better-than-expected earnings and automotive revenue in Q3, along with positive news regarding its aluminum supplier's recovery from a fire [1][3][4]. Financial Performance - Ford reported non-GAAP earnings per share of $0.45 for Q3, surpassing analysts' consensus estimate of $0.36 [3]. - The company's automotive revenue reached $47.1 billion, exceeding the expected $43 billion for the quarter [3]. Supplier Impact - The fire at Novelis, Ford's main aluminum supplier, had a significant impact, causing an adjusted EBIT headwind of $1.5 billion to $2 billion for Ford [5]. - Novelis is expected to reopen its damaged plant by the end of this year, earlier than the previously announced early 2026, which could help Ford restore production levels more quickly [5]. Future Outlook - Ford has lowered its 2025 EBIT guidance to a range of $6 billion to $6.5 billion, down from $6.5 billion to $7.5 billion, but this revision is viewed positively as it is attributed to the Novelis fire rather than fundamental business issues [6]. - Investors remain optimistic due to higher-than-expected automotive sales and earnings, coupled with the faster recovery of the Novelis plant [6].