Ford Motor Company has exceeded Wall Street’s expectations for the fourth quarter and has provided a positive outlook for 2024. The company reported better-than-expected financial results, with a forecast that includes adjusted earnings before interest and taxes (EBIT) of between $10 billion and $12 billion, adjusted free cash flow of $6 billion to $7 billion, and capital spending of $8 billion to $9.5 billion.

Analysts had anticipated Ford’s guidance to be around $9 billion to $11 billion, but the company’s forecast has surpassed these expectations. In addition to the optimistic forecast, Ford also announced a special dividend of 18 cents per share, along with a first-quarter regular dividend of 15 cents per share. Both dividends are set to be paid on March 1 to shareholders of record at the close of business on Feb. 16.

Following the announcement, Ford’s shares surged by approximately 6% during afterhours trading, further building on a 4.1% increase during the regular trading session on Tuesday, closing at $12.07.

During the fourth quarter, Ford reported earnings of 29 cents per share adjusted, surpassing the expected 14 cents per share adjusted. The automotive revenue also exceeded expectations, reaching $43.2 billion compared to the anticipated $40.12 billion. Despite a net loss of $526 million, or 13 cents per share, Ford’s overall revenue for the period increased by about 4% to $46 billion from approximately $44 billion a year earlier.

The company’s adjusted earnings before interest and taxes (EBIT) experienced a decline of 59% to $1.05 billion from the year-earlier period. However, Ford’s positive performance during the fourth quarter has instilled confidence in its future prospects.