Ford Motor is set to announce its fourth-quarter and 2023 earnings after the markets close on Tuesday. Wall Street analysts have compiled their estimates for the quarter, and here’s what they expect: adjusted earnings per share of 14 cents and automotive revenue of $40.12 billion.
These estimates would represent a significant decrease of 73.4% in adjusted earnings per share compared to the previous year, as well as a 3.9% decline in automotive revenue. Ford’s fourth-quarter results for 2022 included $41.8 billion in automotive revenue, net income of $1.3 billion, and adjusted earnings before interest and taxes of $2.6 billion.
In addition to the earnings figures, investors will be closely watching Ford’s guidance for 2024. Analysts anticipate that the guidance will be flat to slightly lower compared to 2023. However, Ford’s crosstown rival General Motors recently exceeded expectations for earnings guidance.
Analysts have projected Ford’s guidance to fall within the range of $9 billion to $11 billion, according to investor notes from several analysts. Ford had previously forecasted adjusted earnings before interest and taxes of $10 billion to $10.5 billion for 2023. The lower projection was due to contract negotiations with the United Auto Workers union.
Investors will also be keeping an eye out for any actions taken by Ford to offset the increasing labor costs resulting from the new UAW contract, which the company estimates will cost $8.8 billion over the contract’s duration until April 2028.
Ford is expected to face challenges this year, including lower vehicle prices, warranty costs, and continued losses from all-electric vehicles. However, there are some bright spots, particularly its Ford Pro fleet unit and traditional Ford Blue internal combustion engine business.
As investors eagerly await Ford’s earnings report, they are hoping for positive news amidst the challenges facing the automaker. The market will closely analyze the results and guidance provided by Ford to gain insights into the company’s financial health and future prospects.
