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Ford's (F) Earnings Surpass Estimates in Q2, Improve Y/Y
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Ford Motor Company (F - Free Report) delivered second-quarter 2019 adjusted earnings per share (EPS) of 32 cents, which beat the Zacks Consensus Estimate of 30 cents. In the prior-year quarter, adjusted earnings were 27 cents per share.
In the second quarter, the company reported adjusted earnings before interest and taxes (EBIT) of $1.7 billion and adjusted EBIT margin of 4.3%, both flat year over year. Excluding the Pivotal Software revaluation, adjusted EBIT would have amounted to $1.8 billion.
During the reported quarter, Ford generated automotive revenues of $35.8 billion. The figure surpassed the Zacks Consensus Estimate of $34.5 billion. In the prior-year quarter, the figure amounted to $35.9 billion.
Ford Motor Company Price, Consensus and EPS Surprise
During the reported quarter, wholesale volume in the Ford Automotive segment declined 129,000 units to 1.36 million. EBIT rose 19% to $1.4 billion. The figure was driven by improvement in mix and net pricing, especially North America’s franchise strengths in trucks and sport-utility vehicles.
In North America, revenues inched up 1% year over year to $24 billion during the reported quarter. Wholesale volume declined 7% to 693,000 units. Further, EBIT was $1.7 billion, marking fall of $57 million from the year-ago quarter.
In South America, revenues declined 33% year over year to $1 billion. Wholesale volume declined 22% to 75,000 units.
In Europe, revenues fell 1% to $7.6 billion. Wholesale volume increased 3% to around 379,000 units. EBIT amounted $53 million, marking an increase of $126 million from the first quarter of 2018.
In the Middle East & Africa segment, revenues were $0.6 billion. Further, wholesale volume declined 22% to 21,000 units. The region recorded a negative EBIT of $45 million.
In the Asia Pacific region, excluding China, revenues fell 1% to $1.8 billion. Wholesale volume declined 9% to 70,000 units. Further, the region recorded an EBIT of $30 million.
In China, revenues surged 48% year over year to $0.9 billion. Further, wholesale volume declined 32% to $126,000 units.
Financial Position
Ford had cash and cash equivalents of $12.6 billion as of Jun 30, 2019 compared with $9.6 billion as of Dec 31, 2018.
2019 Outlook
Ford expects adjusted EBIT in the range of $7-$7.5 billion compared with $7 billion in 2018. The range indicates additional strength in market factors and improved costs.
Adjusted EPS is anticipated in the range of $1.20-$1.35 compared with $1.30 a year ago. The range assumes a full-year adjusted effective tax rate in the band of 18-20%, which indicates a rise of 10% from year-ago levels. This is likely to create a headwind of 12-16 cents per share in 2019.
Copart has an expected long-term growth rate of 20%. In the past six months, shares of the company have moved up 59.3%.
CarMax has an expected long-term growth rate of 12.6%. In the past six months, shares of the company have rallied 47.9%.
Advance Auto Parts has an expected long-term growth rate of 11.6%. In the past six months, shares of the company have increased 2.3%.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
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Ford's (F) Earnings Surpass Estimates in Q2, Improve Y/Y
Ford Motor Company (F - Free Report) delivered second-quarter 2019 adjusted earnings per share (EPS) of 32 cents, which beat the Zacks Consensus Estimate of 30 cents. In the prior-year quarter, adjusted earnings were 27 cents per share.
In the second quarter, the company reported adjusted earnings before interest and taxes (EBIT) of $1.7 billion and adjusted EBIT margin of 4.3%, both flat year over year. Excluding the Pivotal Software revaluation, adjusted EBIT would have amounted to $1.8 billion.
During the reported quarter, Ford generated automotive revenues of $35.8 billion. The figure surpassed the Zacks Consensus Estimate of $34.5 billion. In the prior-year quarter, the figure amounted to $35.9 billion.
Ford Motor Company Price, Consensus and EPS Surprise
Ford Motor Company price-consensus-eps-surprise-chart | Ford Motor Company Quote
Ford Automotive
During the reported quarter, wholesale volume in the Ford Automotive segment declined 129,000 units to 1.36 million. EBIT rose 19% to $1.4 billion. The figure was driven by improvement in mix and net pricing, especially North America’s franchise strengths in trucks and sport-utility vehicles.
In North America, revenues inched up 1% year over year to $24 billion during the reported quarter. Wholesale volume declined 7% to 693,000 units. Further, EBIT was $1.7 billion, marking fall of $57 million from the year-ago quarter.
In South America, revenues declined 33% year over year to $1 billion. Wholesale volume declined 22% to 75,000 units.
In Europe, revenues fell 1% to $7.6 billion. Wholesale volume increased 3% to around 379,000 units. EBIT amounted $53 million, marking an increase of $126 million from the first quarter of 2018.
In the Middle East & Africa segment, revenues were $0.6 billion. Further, wholesale volume declined 22% to 21,000 units. The region recorded a negative EBIT of $45 million.
In the Asia Pacific region, excluding China, revenues fell 1% to $1.8 billion. Wholesale volume declined 9% to 70,000 units. Further, the region recorded an EBIT of $30 million.
In China, revenues surged 48% year over year to $0.9 billion. Further, wholesale volume declined 32% to $126,000 units.
Financial Position
Ford had cash and cash equivalents of $12.6 billion as of Jun 30, 2019 compared with $9.6 billion as of Dec 31, 2018.
2019 Outlook
Ford expects adjusted EBIT in the range of $7-$7.5 billion compared with $7 billion in 2018. The range indicates additional strength in market factors and improved costs.
Adjusted EPS is anticipated in the range of $1.20-$1.35 compared with $1.30 a year ago. The range assumes a full-year adjusted effective tax rate in the band of 18-20%, which indicates a rise of 10% from year-ago levels. This is likely to create a headwind of 12-16 cents per share in 2019.
Zacks Rank & Stocks to Consider
Ford currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Copart, Inc (CPRT - Free Report) , CarMax, Inc (KMX - Free Report) and Advance Auto Parts, Inc. (AAP - Free Report) . While Copart sports a Zacks Rank #1 (Strong Buy), CarMax and Advance Auto Parts carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copart has an expected long-term growth rate of 20%. In the past six months, shares of the company have moved up 59.3%.
CarMax has an expected long-term growth rate of 12.6%. In the past six months, shares of the company have rallied 47.9%.
Advance Auto Parts has an expected long-term growth rate of 11.6%. In the past six months, shares of the company have increased 2.3%.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>