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What to Expect: Ford’s Earnings Report After Market Close

Ford Motor is set to announce its first-quarter earnings after the markets close on Wednesday, and Wall Street is eagerly waiting to see how the company performed. Based on average analyst estimates, Ford is expected to report adjusted earnings per share of 42 cents and automotive revenue of $40.10 billion. These figures would represent a 2.6% increase in revenue compared to the previous year but a 32.9% decline in adjusted earnings per share.

Ford’s first-quarter results from 2023 included $39.09 billion in revenue, net income of $1.8 billion, or 44 cents per share, and adjusted earnings before interest and taxes of $3.38 billion. The company’s guidance for 2024, released in February, projected adjusted earnings before interest and taxes between $10 billion and $12 billion, adjusted free cash flow of $6 billion to $7 billion, and capital spending of $8 billion to $9.5 billion.

However, there is less consensus among analysts regarding Ford’s performance compared to its rival General Motors. While Morgan Stanley considers Ford its “top pick,” other analysts on Wall Street are less bullish on the company. UBS analyst Joseph Spak stated in an investor note that they prefer GM over Ford.

One of the challenges Ford has faced in recent years is inflated warranty costs, which amounted to $1.9 billion in 2023. This has impacted the company’s earnings, and Ford has acknowledged a $7 billion to $8 billion annual disadvantage compared to traditional rivals due to production costs, quality issues, and other operational inefficiencies.

Investors will be closely watching for improvements in these areas, as well as progress in CEO Jim Farley’s “Ford+” restructuring plan, which was announced in 2021. Additionally, any updates or delays regarding Ford’s all-electric vehicle plans will be of interest.

Overall, Ford’s first-quarter earnings report is highly anticipated, and the results will provide valuable insights into the company’s financial performance and future prospects. As the market closes, analysts and investors alike will be carefully monitoring Ford’s numbers and announcements for any indications of the company’s direction moving forward.

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