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Ford (F) Q4 Earnings Surpass Estimates, Revenues Rise Y/Y
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Ford (F - Free Report) reported adjusted earnings of 29 cents per share for fourth-quarter 2023, which beat the Zacks Consensus Estimate of 12 cents but fell from 51 cents recorded in the year-ago quarter. The company’s consolidated fourth-quarter revenues came in at $43.3 billion, beating the Zacks Consensus Estimate of $37.96 billion and rising 4% year over year.
Ford Motor Company Price, Consensus and EPS Surprise
The U.S. legacy automaker reports its automotive results under three business segments — Ford Model e, Ford Blue and Ford Pro. While Ford Blue focuses on the firm’s legacy gas-powered business, Ford Model e focuses on EVs, advanced technologies and several related aspects to support electrification plans and Ford Pro deals with commercial vehicles and services.
In the fourth quarter, total wholesale volume in the Ford Blue segment remained flat year over year at 758,000 units and exceeded our expectation of 641,000 units. Also, revenues from the segment remained flat year over year at $26.2 billion but topped our estimate of $22.3 billion on better-than-expected volume. Earnings before interest and taxes came in at $813 million with an EBIT margin of 3.1%. EBIT exceeded our projection of $743.7 million.
Total wholesale volume in the Ford Model e segment increased 14% year over year to 34,000 units and exceeded our expectation of 28,000 units. Revenues from the segment rose 2% year over year to $1.6 billion and surpassed our estimate of $1.35 billion on better-than-expected volume. Loss before interest and taxes widened to $1.57 billion with an EBIT margin of negative 98.2%.
Total wholesale volume in the Ford Pro segment increased 1% year over year to 361,000 and exceeded our expectation of 280,000 units. Also, revenues from the segment grew 11% year over year to $15.4 billion and beat our expectations of $12.86 billion. Earnings before interest and taxes came in at $1.81 billion with an EBIT margin of 11.8%. EBIT exceeded our projection of $1.08 billion.
Overall, Ford’s total automotive revenues came in at around $43.2 billion, surpassing our estimate of $36.5 billion on stronger-than-expected results from Ford Blue, Ford Model e and Ford Pro units.
Fourth-quarter revenues from the Ford Credit unit came in at $2.7 billion, up 17.4% year over year and beat our estimate of $2.53 billion. Pretax earnings totaled $280 million, rising from $191 million in the year-ago quarter.
Financial Position
Ford reported an adjusted free cash flow of $1.96 billion for the quarter. It had cash and cash equivalents of $24.86 billion as of Dec 31, 2023. Long-term debt, excluding Ford Credit, totaled $19.2 billion at the end of the fourth quarter of 2023.
Ford declared its first-quarter 2024 regular dividend of 5 cents per share and a supplemental dividend of 18 cents per share, payable on Mar 1, 2024, to shareholders of record at the close of business on Feb 16, 2024.
2024 Guidance
For full-year 2024, Ford expects adjusted EBIT in the range of $10-$12 billion. Adjusted free cash flow is estimated in the range of $6-$7 billion. Capital spending is expected between $8 billion and $9.5 billion.
The Zacks Consensus Estimate for HMC’s 2024 sales and earnings implies year-over-year growth of 14.8% and 37.3%, respectively. The EPS estimates for 2024 and 2025 have moved up 16 cents and 22 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 6.7% and 4%, respectively. The EPS estimates for 2024 and 2025 have improved 8 cents and 22 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 and 2025 have improved 22 cents each in the past seven days.
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Ford (F) Q4 Earnings Surpass Estimates, Revenues Rise Y/Y
Ford (F - Free Report) reported adjusted earnings of 29 cents per share for fourth-quarter 2023, which beat the Zacks Consensus Estimate of 12 cents but fell from 51 cents recorded in the year-ago quarter. The company’s consolidated fourth-quarter revenues came in at $43.3 billion, beating the Zacks Consensus Estimate of $37.96 billion and rising 4% year over year.
Ford Motor Company Price, Consensus and EPS Surprise
Ford Motor Company price-consensus-eps-surprise-chart | Ford Motor Company Quote
Segmental Performance
The U.S. legacy automaker reports its automotive results under three business segments — Ford Model e, Ford Blue and Ford Pro. While Ford Blue focuses on the firm’s legacy gas-powered business, Ford Model e focuses on EVs, advanced technologies and several related aspects to support electrification plans and Ford Pro deals with commercial vehicles and services.
In the fourth quarter, total wholesale volume in the Ford Blue segment remained flat year over year at 758,000 units and exceeded our expectation of 641,000 units. Also, revenues from the segment remained flat year over year at $26.2 billion but topped our estimate of $22.3 billion on better-than-expected volume. Earnings before interest and taxes came in at $813 million with an EBIT margin of 3.1%. EBIT exceeded our projection of $743.7 million.
Total wholesale volume in the Ford Model e segment increased 14% year over year to 34,000 units and exceeded our expectation of 28,000 units. Revenues from the segment rose 2% year over year to $1.6 billion and surpassed our estimate of $1.35 billion on better-than-expected volume. Loss before interest and taxes widened to $1.57 billion with an EBIT margin of negative 98.2%.
Total wholesale volume in the Ford Pro segment increased 1% year over year to 361,000 and exceeded our expectation of 280,000 units. Also, revenues from the segment grew 11% year over year to $15.4 billion and beat our expectations of $12.86 billion. Earnings before interest and taxes came in at $1.81 billion with an EBIT margin of 11.8%. EBIT exceeded our projection of $1.08 billion.
Overall, Ford’s total automotive revenues came in at around $43.2 billion, surpassing our estimate of $36.5 billion on stronger-than-expected results from Ford Blue, Ford Model e and Ford Pro units.
Fourth-quarter revenues from the Ford Credit unit came in at $2.7 billion, up 17.4% year over year and beat our estimate of $2.53 billion. Pretax earnings totaled $280 million, rising from $191 million in the year-ago quarter.
Financial Position
Ford reported an adjusted free cash flow of $1.96 billion for the quarter. It had cash and cash equivalents of $24.86 billion as of Dec 31, 2023. Long-term debt, excluding Ford Credit, totaled $19.2 billion at the end of the fourth quarter of 2023.
Ford declared its first-quarter 2024 regular dividend of 5 cents per share and a supplemental dividend of 18 cents per share, payable on Mar 1, 2024, to shareholders of record at the close of business on Feb 16, 2024.
2024 Guidance
For full-year 2024, Ford expects adjusted EBIT in the range of $10-$12 billion. Adjusted free cash flow is estimated in the range of $6-$7 billion. Capital spending is expected between $8 billion and $9.5 billion.
Zacks Rank & Key Picks
F currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Honda Motor Co., Ltd. (HMC - Free Report) , Oshkosh Corporation (OSK - Free Report) and Modine Manufacturing Company (MOD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HMC’s 2024 sales and earnings implies year-over-year growth of 14.8% and 37.3%, respectively. The EPS estimates for 2024 and 2025 have moved up 16 cents and 22 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 6.7% and 4%, respectively. The EPS estimates for 2024 and 2025 have improved 8 cents and 22 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 and 2025 have improved 22 cents each in the past seven days.