Ford Motor is set to report its second-quarter earnings after the markets close on Wednesday. While the results are expected to be relatively healthy, they are projected to be down from the second quarter of 2023 and not as strong as its crosstown rival, General Motors.
According to average estimates compiled by LSEG, Wall Street is expecting Ford to report adjusted earnings per share of 68 cents and automotive revenue of $44.02 billion. These results would indicate a 3.8% increase in revenue compared to the previous year, but a 5.2% decline in adjusted earnings per share.
In the second quarter of 2023, Ford reported $42.43 billion in revenue, net income of $1.92 billion (or 47 cents per share), and adjusted earnings before interest and taxes (EBIT) of $3.79 billion. It’s important to note that Ford’s guidance for the year includes adjusted EBIT of between $10 billion and $12 billion, as well as free cash flow of $6.5 billion to $7.5 billion.
Despite the challenges faced by the automotive industry, Ford’s stock has performed well this year, with a 15% increase. The pricing in the industry has proven to be more resilient than expected. However, the industrywide transition to electric vehicles has been slower than anticipated, prompting Ford to adjust its product plans. The company is now focusing less on all-electric vehicles and more on hybrids.
Just last week, Ford announced its plans to expand production of its large Super Duty trucks to a Canadian plant that was originally intended to be converted into an all-electric vehicle hub. This shift in strategy reflects the current market dynamics and the need for flexibility in responding to consumer demand.
It is worth noting that the transition to electric vehicles is not happening as quickly as some experts had predicted. This is due to various factors, including infrastructure challenges, range anxiety, and the higher cost of electric vehicles compared to traditional combustion engine vehicles. As a result, automakers like Ford are adapting their plans to meet the evolving needs of the market.
In conclusion, Ford’s second-quarter earnings report will provide valuable insights into the company’s financial performance. While the results may not be as strong as General Motors’, they are still expected to be relatively healthy. Ford’s stock has performed well this year, and the company’s adjustment of its product plans to focus on hybrids reflects the current state of the industry. The transition to electric vehicles is happening more slowly than anticipated, but automakers like Ford are adapting to meet the challenges and opportunities of the evolving market.
