Ford (F) announced better-than-expected first-quarter earnings even as revenue came in below predictions late Wednesday. The company also revised aspects of its 2024 outlook as its expects continued losses from its EV segment.
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Ford reported Q1 revenue up 3% to $42.8 billion while EPS fell 22% to 49 cents. Wall Street expected earnings per share down 32% to 43 cents with sales totaling $42.93 billion. Earlier this month, Ford announced U.S. sales grew 6.8% in Q1, with overall EV sales including hybrids jumping 82%.
The company is the latest auto giant to announce quarterly results after General Motors (GM) surprised Wall Street with better-than-expected earnings and Tesla (TSLA) stock surged on its outlook Tuesday.
On March 26, Ford management reaffirmed guidance for annual core profit of $10 billion to $12 billion. Ford again said hybrids will be key as EVs slow. The company had said it is shifting investments from EVs to hybrid vehicles.
On Wednesday, Chief Financial Officer John Lawler said that Ford's full-year adjusted earnings before interest and taxes (EBIT) guidance range is unchanged.
Meanwhile, Ford now expects free cash flow of $6.5 billion-$7.5 billion in 2024, up from its initial outlook of $6 billion-$7 billion. The auto giant also said Wednesday it anticipates 2024 capital expenditures of $8 billion-$9 billion, a narrower view compared to its previous forecast of $8 billion-$9.5 billion.
Ford also maintained its EBIT outlook of $8 billion-$9 billion for Ford Pro, $7 billion-$7.5 billion for Ford Blue and an EBIT loss of $5.0 billion-$5.5 billion for Ford Model e.
In Q1, the company saw Ford Model e revenue drop, as wholesales declined and significant industrywide pricing pressure continued to affect EVs on the market. The segment had an EBIT loss of $1.3 billion, with costs that were flat compared to last year.
Ford added it expects EV costs to improve moving forward.
Ford stock pared early losses, gaining 0.7% to 13.05 during market action Thursday. On Wednesday ahead of earnings, Ford stock edged up a fraction to 12.95.
F shares rose around 0.5% Tuesday amid GM's strong results and guidance. Ahead of earnings, Ford stock has gained more than 6% on the week and is below an official 13.95 buy point from a cup-with-handle base, according to MarketSurge.
On Tuesday, General Motors raised its 2024 guidance with the company expecting full-year earnings of $9.00-$10.00 per share on adjusted earnings before interest and taxes (EBIT) between $12.5 billion to $14.5 billion.
GM previously forecast earnings of $8.50 to $9.50 per share on adjusted EBIT of $12 billion to $14 billion. Wall Street predicts full-year earnings of $8.89 per share on $172.27 billion in sales, according to FactSet.
Ford stock has a 75 Composite Rating out of a best-possible 99. It has a 72 Relative Strength Rating and a 67 EPS Rating.
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