Ford shares jump 2.4% premarket after car maker says Q2 EBIT ahead of expectations amid strong demand for new vehicles

Ford Motor Co. shares F, +0.13% jumped 2.4% in premarket trade Thursday, after the car maker said it expects EBIT, or earnings before interest and taxes, to be better than it expected in the second quarter and "significantly" higher than a year ago. In a statement published ahead of an investor conference, Ford said customer reservations for four new vehicles is strong; namely the full-size Bronco SUV, battery-electric F-150 Lightning pickup, Maverick compact truck and all-electric E-Transit commercial van. Chief Executive Jim Farley will tell investors that Ford is seeing improvement in its automotive business since it offered full-year guidance on April 28, despite continued challenges and uncertainty relating to supplies of semiconductors. "The improvement in automotive is being driven by lower-than-anticipated costs and favorable market factors," Farley said in a statement. "Additionally, higher vehicle auction values are benefitting Ford Credit." Net profit for the quarter, however, is expected to be "substantially lower" than a year ago, when it was boosted by a $3.5 billion gain on the company's investment in Argo AI. Ford is slated to report second-quarter earnings on July 28. Shares have gained 71% in the year to date, while the S&P 500 SPX, -0.54% has gained 12.5%.