Ford Motor Co. (F - Free Report) posted adjusted earnings per share of 43 cents in the first quarter of 2018. The reported figure was 3 cents higher than the year-ago figure. Also, earnings beat the Zacks Consensus Estimate of 41 cents per share.
The company identified an incremental $11.5 billion of costs and efficiency opportunities. It expects adjusted EBIT margin of 8% by 2020, two years earlier than the previous target. It also intends to lower the cumulative capital spending by $5 billion between 2019 and 2022.
First-quarter net income was $1.7 billion, reflecting an increase of $0.1 billion from the year-ago quarter.
During the reported quarter, Ford logged automotive revenues of $39 billion, up from the prior-year quarter figure of $36.5 billion. Its Zacks Consensuses Estimate for revenues was $37 billion.
Ford Automotive
During the reported quarter, wholesale volumes at the Ford Automotive segment decreased 41,000 units to 1.66 million. Earnings before income and taxes (EBIT) decreased to $1.7 billion from $2.1 billion in the year-ago quarter.
In North America, during the reported quarter, revenues increased $0.8 billion to $24.8 billion. Wholesale volumes increased 25,000 units year over year to 796,000. Further, EBIT decreased to $1.9 billion from $2.1 billion in first-quarter 2017.
In South America, revenues increased $0.2 billion to $1.3 billion. Wholesale volumes rose 16,000 to 86,000 units. Pre-tax loss amounted to $149 million.
In Europe, revenues increased $1.3 billion to $8.9 billion. Wholesale volumes remained flat around 449,000 units. The region incurred EBIT of $119 million during the quarter.
In the Middle East & Africa segment, revenues remained flat around $0.6 billion. Wholesale volumes plunged 5,000 to 25,000 units. The region incurred pre-tax loss of $54 million.
In the Asia-Pacific region, revenues increased $0.2 billion to $3.4 billion. Wholesale volumes declined 77,000 to 306,000 units. The region generated pre-tax loss of $119 million.
Financial Services
Ford Credit generated EBIT of $641 million, up from $481 million in the prior-year quarter.
Financial Position
Ford had cash and cash equivalents of $17.9 billion as of Mar 31, 2018, up from $9.6 billion as of Dec 31, 2017.
2018 Guidance
The company expects 2018 adjusted EPS of $1.45-$1.70 and an effective tax rate of 15%. Revenues in 2018 are anticipated to be modestly higher than 2017.
Zacks Rank and Top Picks
Ford carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space include Fox Factory Holding Corp. (FOXF - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Honda Motor Co., Ltd. (HMC - Free Report) , each carrying a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fox Factory Holding has expected long-term growth rate of 10.5%. In the past year, shares of the company have returned 14.2%.
Allison Transmission has expected long-term growth rate of 10%. In a year, shares of the company have advanced 0.7%.
Honda has an expected long-term growth rate of 4.8%. In a year, shares of the company have returned 19.2%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Ford Motor Co. (F - Free Report) posted adjusted earnings per share of 43 cents in the first quarter of 2018. The reported figure was 3 cents higher than the year-ago figure. Also, earnings beat the Zacks Consensus Estimate of 41 cents per share.
The company identified an incremental $11.5 billion of costs and efficiency opportunities. It expects adjusted EBIT margin of 8% by 2020, two years earlier than the previous target. It also intends to lower the cumulative capital spending by $5 billion between 2019 and 2022.
First-quarter net income was $1.7 billion, reflecting an increase of $0.1 billion from the year-ago quarter.
During the reported quarter, Ford logged automotive revenues of $39 billion, up from the prior-year quarter figure of $36.5 billion. Its Zacks Consensuses Estimate for revenues was $37 billion.
Ford Automotive
During the reported quarter, wholesale volumes at the Ford Automotive segment decreased 41,000 units to 1.66 million. Earnings before income and taxes (EBIT) decreased to $1.7 billion from $2.1 billion in the year-ago quarter.
In North America, during the reported quarter, revenues increased $0.8 billion to $24.8 billion. Wholesale volumes increased 25,000 units year over year to 796,000. Further, EBIT decreased to $1.9 billion from $2.1 billion in first-quarter 2017.
In South America, revenues increased $0.2 billion to $1.3 billion. Wholesale volumes rose 16,000 to 86,000 units. Pre-tax loss amounted to $149 million.
In Europe, revenues increased $1.3 billion to $8.9 billion. Wholesale volumes remained flat around 449,000 units. The region incurred EBIT of $119 million during the quarter.
In the Middle East & Africa segment, revenues remained flat around $0.6 billion. Wholesale volumes plunged 5,000 to 25,000 units. The region incurred pre-tax loss of $54 million.
In the Asia-Pacific region, revenues increased $0.2 billion to $3.4 billion. Wholesale volumes declined 77,000 to 306,000 units. The region generated pre-tax loss of $119 million.
Financial Services
Ford Credit generated EBIT of $641 million, up from $481 million in the prior-year quarter.
Financial Position
Ford had cash and cash equivalents of $17.9 billion as of Mar 31, 2018, up from $9.6 billion as of Dec 31, 2017.
2018 Guidance
The company expects 2018 adjusted EPS of $1.45-$1.70 and an effective tax rate of 15%. Revenues in 2018 are anticipated to be modestly higher than 2017.
Zacks Rank and Top Picks
Ford carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space include Fox Factory Holding Corp. (FOXF - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Honda Motor Co., Ltd. (HMC - Free Report) , each carrying a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fox Factory Holding has expected long-term growth rate of 10.5%. In the past year, shares of the company have returned 14.2%.
Allison Transmission has expected long-term growth rate of 10%. In a year, shares of the company have advanced 0.7%.
Honda has an expected long-term growth rate of 4.8%. In a year, shares of the company have returned 19.2%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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