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Ford (F) Q2 Earnings Miss Expectations, Guidance Revised
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Ford (F - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of 47 cents, which missed the Zacks Consensus Estimate of 64 cents and declined from 72 cents recorded in the year-ago quarter. The company’s consolidated second-quarter revenues came in at $47.8 billion, up 6.3% year over year.
Ford Motor Company Price, Consensus and EPS Surprise
In the second quarter, total wholesale volume in the Ford Blue segment increased 3% year over year to 741,000 units and topped our expectation of 694,000 units. Also, revenues from the segment increased 7% year over year to $26.7 billion and topped our estimate of $24.14 billion on better-than-expected volume. Earnings before interest and taxes came in at $1.71 billion with an EBIT margin of 4.4%. EBIT missed our projection of $2.1 billion.
Total wholesale volume in the Ford Model e segment decreased 23% year over year to 26,000 units but surpassed our expectation of 12,000 units. Revenues from the segment declined 37% year over year to $1.1 billion and topped our estimate of $140.4 million on higher-than-expected volume. Loss before interest and taxes widened to $1.14 billion.
Total wholesale volume in the Ford Pro segment increased 3% year over year to 375,000 but missed our expectation of 408,000 units. Revenues from the segment grew 9% year over year to $17 billion but missed our expectations of $18.17 billion. Earnings before interest and taxes came in at $2.56 billion with an EBIT margin of 15.1%. EBIT exceeded our projection of $2.28 billion.
Overall, F’s total automotive revenues came in at around $44.8 billion, topping our estimate of $42.45 billion on better-than-expected results from Ford Blue and Ford Model e.
Second-quarter revenues from the Ford Credit unit came in at $2,997 million, which increased 18.6% year over year but marginally missed our estimate of $2,999.8 million. Pretax earnings totaled $343 million, which fell from $391 million reported in the year-ago quarter.
Financial Position
Ford reported an adjusted free cash flow of $3.2 billion for the quarter. It had cash and cash equivalents of $19.95 billion as of Jun 30, 2024. Long-term debt, excluding Ford Credit, totaled $18.69 billion at the end of the second quarter of 2024.
F declared its third-quarter 2024 regular dividend of 15 cents per share, payable on Sep 3, 2024, to shareholders of record at the close of business on Aug 7, 2024.
Revised 2024 Guidance
For full-year 2024, Ford’s outlook for adjusted EBIT remained unchanged at $10-$12 billion. However, the company now expects adjusted free cash flow in the range of $7.5-$8.5 billion, up from the previous outlook of $6.5-$7.5 billion. Capital spending is expected in the range of $8-$9 billion.
The consensus estimate for SZKMY’s 2025 earnings suggests year-over-year growth of 2.09%. EPS estimates for 2025 and 2026 have improved 38 cents and 15 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.11% and 9.93%, respectively. EPS estimates for 2024 and 2025 have improved 19 cents and 29 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for HMC’s 2025 sales and earnings suggests year-over-year growth of 0.73%. EPS estimates for 2025 and 2026 have improved 5 cents and 4 cents, respectively, in the past seven days.
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Ford (F) Q2 Earnings Miss Expectations, Guidance Revised
Ford (F - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of 47 cents, which missed the Zacks Consensus Estimate of 64 cents and declined from 72 cents recorded in the year-ago quarter. The company’s consolidated second-quarter revenues came in at $47.8 billion, up 6.3% 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
In the second quarter, total wholesale volume in the Ford Blue segment increased 3% year over year to 741,000 units and topped our expectation of 694,000 units. Also, revenues from the segment increased 7% year over year to $26.7 billion and topped our estimate of $24.14 billion on better-than-expected volume. Earnings before interest and taxes came in at $1.71 billion with an EBIT margin of 4.4%. EBIT missed our projection of $2.1 billion.
Total wholesale volume in the Ford Model e segment decreased 23% year over year to 26,000 units but surpassed our expectation of 12,000 units. Revenues from the segment declined 37% year over year to $1.1 billion and topped our estimate of $140.4 million on higher-than-expected volume. Loss before interest and taxes widened to $1.14 billion.
Total wholesale volume in the Ford Pro segment increased 3% year over year to 375,000 but missed our expectation of 408,000 units. Revenues from the segment grew 9% year over year to $17 billion but missed our expectations of $18.17 billion. Earnings before interest and taxes came in at $2.56 billion with an EBIT margin of 15.1%. EBIT exceeded our projection of $2.28 billion.
Overall, F’s total automotive revenues came in at around $44.8 billion, topping our estimate of $42.45 billion on better-than-expected results from Ford Blue and Ford Model e.
Second-quarter revenues from the Ford Credit unit came in at $2,997 million, which increased 18.6% year over year but marginally missed our estimate of $2,999.8 million. Pretax earnings totaled $343 million, which fell from $391 million reported in the year-ago quarter.
Financial Position
Ford reported an adjusted free cash flow of $3.2 billion for the quarter. It had cash and cash equivalents of $19.95 billion as of Jun 30, 2024. Long-term debt, excluding Ford Credit, totaled $18.69 billion at the end of the second quarter of 2024.
F declared its third-quarter 2024 regular dividend of 15 cents per share, payable on Sep 3, 2024, to shareholders of record at the close of business on Aug 7, 2024.
Revised 2024 Guidance
For full-year 2024, Ford’s outlook for adjusted EBIT remained unchanged at $10-$12 billion. However, the company now expects adjusted free cash flow in the range of $7.5-$8.5 billion, up from the previous outlook of $6.5-$7.5 billion. Capital spending is expected in the range of $8-$9 billion.
Zacks Rank & Key Picks
F currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Suzuki Motor Corporation (SZKMY - Free Report) , BYD Company Limited (BYDDY - Free Report) and Honda Motor Co., Ltd. (HMC - Free Report) . While SZKMY and BYDDY sport a Zacks Rank #1 (Strong Buy) each, HMC carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for SZKMY’s 2025 earnings suggests year-over-year growth of 2.09%. EPS estimates for 2025 and 2026 have improved 38 cents and 15 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.11% and 9.93%, respectively. EPS estimates for 2024 and 2025 have improved 19 cents and 29 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for HMC’s 2025 sales and earnings suggests year-over-year growth of 0.73%. EPS estimates for 2025 and 2026 have improved 5 cents and 4 cents, respectively, in the past seven days.