We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ford Motor (F - Free Report) reported adjusted earnings of 30 cents per share in third-quarter 2022, missing the Zacks Consensus Estimate of 31 cents. Lower-than-expected profits in its North America segment and plummeting revenues and a widening pretax loss in the China unit led to this downslide. The bottom line declined 41.2% from the year-ago quarter’s earnings of 51 cents. The company’s consolidated third-quarter revenues came in at $39.4 billion, rising 10% year over year.
Ford Motor Company Price, Consensus and EPS Surprise
In the third quarter, the total wholesale volume in the Ford Automotive segment increased 7% year over year to 1,086,000 units but missed the consensus metric of 1,132,000 units. Revenues from the segment increased 12% to $37.2 billion but lagged the Zacks Consensus Estimate of $38.6 billion. Earnings before interest and taxes came in at $1,698 million, declining from the year-ago EBIT of $2,459 million and missing the consensus metric of $2,111 million.
In North America, revenues grew 10% year over year to $26.3 billion in the reported quarter but fell short of the consensus metric of $27.6 billion. The wholesale volume rose 4% to 568,000 units but lagged the consensus metric of 627,000 units. EBIT totaled $1,309 million, a decrease from $2,423 million in the corresponding quarter of 2021. The figure also missed the consensus mark of $1,955 million.
In South America, revenues moved up 41% year over year to $0.9 billion in the quarter and topped the consensus mark of $0.87 billion. Wholesale volume increased 17% to 23,000 units. The figure, however, lagged the consensus mark of 27,510 units. The unit’s pretax earnings came in at $149 million, increasing massively from $2 million in the prior-year quarter benefiting from restructuring efforts. It also crossed the consensus mark of $96 million.
In Europe, revenues jumped 11% year over year to $6.8 billion in the quarter and crossed the consensus mark of $6.52 billion. Wholesale volume increased 25% to 273,000 units and beat the consensus mark of 252,000 units. Pretax earnings for the segment totaled $204 million, reversing from the year-ago loss of $52 million. The EBIT far exceeded the consensus mark of $11.4 million.
In China, revenues nosedived 27% year over year to $0.4 billion in the reported quarter and lagged the consensus mark of $0.72 billion. Wholesale volume also fell 16% to 137,000 units and missed the consensus metric of 138,000 units. The pretax loss widened from the prior year’s loss of $39 million to $193 million. The loss was wider than the consensus mark of a loss of $64 million.
In the International Markets Group, revenues soared 47% from the year-ago figure to $2.8 billion and topped the consensus mark of $2.63 billion. Wholesale volume rose 30% to 86,000 units but lagged the consensus metric of 88,000 units. Pretax earnings totaled $229 million, rising from $125 million reported in the year-ago period and crossing the consensus metric of $113 million.
Third-quarter revenues from the Ford Credit unit came in at $2,187 million, 10% lower than the year-ago revenues of $2,434 million and missing the Zacks Consensus Estimate of $2,314 million. Pretax earnings totaled $599 million, falling from $1,077 million in the year-ago quarter and lagging the consensus mark of $770 million.
Revenues from Ford Mobility came in at $11 million, steeply declining from the year-earlier level of $38 million and grossly missing the consensus estimate of $58 million.
Financial Position
Ford reported adjusted free cash flow (FCF) of $3,601 million during the quarter. It had cash and cash equivalents of $21.5 billion as of Sep 30, 2022, compared with $20.5 billion on Dec 31, 2021. The automotive long-term debt increased to $19,073 million from $17,200 million as of the end of 2021. Riding on its financial strength, Ford announced a dividend of 15 cents per share. The dividend is payable on Dec 1 to shareholders of record at the close of business on Nov 15. Ford is resuming a modest share repurchase program to offset the dilutive effect of stock-based compensation and approved the repurchase of up to 35 million shares over time for that cause.
Guidance
Ford’s 2022 projections have been revised. Adjusted EBIT for 2022 is now estimated to be around $11.5 billion instead of the prior guided range of $11.5-$12.5 billion. Adjusted FCF is envisioned in the range of $9.5 billion-$10 billion for 2022, up from the prior range of $5.5-6.5 billion. The company’s assumption of growth of 10% to 15% in vehicle wholesale volumes for 2022 remains the same. However, it anticipates headwinds from commodity prices and other inflationary costs to the tune of $9 billion for 2022.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 1% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Allison has an expected earnings growth rate of 21.5% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 4.34% downward over the past 30 days.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Ford's (F) Q3 Earnings Miss, Sales Grow, '22 View Revised
Ford Motor (F - Free Report) reported adjusted earnings of 30 cents per share in third-quarter 2022, missing the Zacks Consensus Estimate of 31 cents. Lower-than-expected profits in its North America segment and plummeting revenues and a widening pretax loss in the China unit led to this downslide. The bottom line declined 41.2% from the year-ago quarter’s earnings of 51 cents. The company’s consolidated third-quarter revenues came in at $39.4 billion, rising 10% 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 third quarter, the total wholesale volume in the Ford Automotive segment increased 7% year over year to 1,086,000 units but missed the consensus metric of 1,132,000 units. Revenues from the segment increased 12% to $37.2 billion but lagged the Zacks Consensus Estimate of $38.6 billion. Earnings before interest and taxes came in at $1,698 million, declining from the year-ago EBIT of $2,459 million and missing the consensus metric of $2,111 million.
In North America, revenues grew 10% year over year to $26.3 billion in the reported quarter but fell short of the consensus metric of $27.6 billion. The wholesale volume rose 4% to 568,000 units but lagged the consensus metric of 627,000 units. EBIT totaled $1,309 million, a decrease from $2,423 million in the corresponding quarter of 2021. The figure also missed the consensus mark of $1,955 million.
In South America, revenues moved up 41% year over year to $0.9 billion in the quarter and topped the consensus mark of $0.87 billion. Wholesale volume increased 17% to 23,000 units. The figure, however, lagged the consensus mark of 27,510 units. The unit’s pretax earnings came in at $149 million, increasing massively from $2 million in the prior-year quarter benefiting from restructuring efforts. It also crossed the consensus mark of $96 million.
In Europe, revenues jumped 11% year over year to $6.8 billion in the quarter and crossed the consensus mark of $6.52 billion. Wholesale volume increased 25% to 273,000 units and beat the consensus mark of 252,000 units. Pretax earnings for the segment totaled $204 million, reversing from the year-ago loss of $52 million. The EBIT far exceeded the consensus mark of $11.4 million.
In China, revenues nosedived 27% year over year to $0.4 billion in the reported quarter and lagged the consensus mark of $0.72 billion. Wholesale volume also fell 16% to 137,000 units and missed the consensus metric of 138,000 units. The pretax loss widened from the prior year’s loss of $39 million to $193 million. The loss was wider than the consensus mark of a loss of $64 million.
In the International Markets Group, revenues soared 47% from the year-ago figure to $2.8 billion and topped the consensus mark of $2.63 billion. Wholesale volume rose 30% to 86,000 units but lagged the consensus metric of 88,000 units. Pretax earnings totaled $229 million, rising from $125 million reported in the year-ago period and crossing the consensus metric of $113 million.
Third-quarter revenues from the Ford Credit unit came in at $2,187 million, 10% lower than the year-ago revenues of $2,434 million and missing the Zacks Consensus Estimate of $2,314 million. Pretax earnings totaled $599 million, falling from $1,077 million in the year-ago quarter and lagging the consensus mark of $770 million.
Revenues from Ford Mobility came in at $11 million, steeply declining from the year-earlier level of $38 million and grossly missing the consensus estimate of $58 million.
Financial Position
Ford reported adjusted free cash flow (FCF) of $3,601 million during the quarter. It had cash and cash equivalents of $21.5 billion as of Sep 30, 2022, compared with $20.5 billion on Dec 31, 2021. The automotive long-term debt increased to $19,073 million from $17,200 million as of the end of 2021. Riding on its financial strength, Ford announced a dividend of 15 cents per share. The dividend is payable on Dec 1 to shareholders of record at the close of business on Nov 15. Ford is resuming a modest share repurchase program to offset the dilutive effect of stock-based compensation and approved the repurchase of up to 35 million shares over time for that cause.
Guidance
Ford’s 2022 projections have been revised. Adjusted EBIT for 2022 is now estimated to be around $11.5 billion instead of the prior guided range of $11.5-$12.5 billion. Adjusted FCF is envisioned in the range of $9.5 billion-$10 billion for 2022, up from the prior range of $5.5-6.5 billion. The company’s assumption of growth of 10% to 15% in vehicle wholesale volumes for 2022 remains the same. However, it anticipates headwinds from commodity prices and other inflationary costs to the tune of $9 billion for 2022.
Zacks Rank & Key Picks
F currently has a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Cummins Inc. (CMI - Free Report) , CarParts.com (PRTS - Free Report) and Allison Transmission Holdings (ALSN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 1% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Allison has an expected earnings growth rate of 21.5% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 4.34% downward over the past 30 days.