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Ford (F) Q1 Earnings Lag Estimates, Revenues Shrink Y/Y
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Ford Motor (F - Free Report) reported adjusted earnings of 38 cents per share in first-quarter 2022, missing the Zacks Consensus Estimate of 39 cents. Lower-than-expected profits in North America and a wider-than-expected pretax loss in China led to this underperformance. The bottom line compares unfavorably with the year-ago quarter’s earnings of 89 cents. The company’s consolidated first-quarter revenues came in at $34.5 billion, down 4.9% year over year.
Ford Motor Company Price, Consensus and EPS Surprise
In the first quarter, the total wholesale volume in the Ford Automotive segment fell 9% year over year to 966,000 units. Revenues from the segment declined 4% to $32.1 billion and missed the Zacks Consensus estimate of $39.1 billion. Earnings before interest and taxes came in at $1,891 million against the year-ago loss of $1,506 million.
In North America, revenues fell 3% year over year to $22.3 billion in the reported quarter. The wholesale volume declined 4% to 514,000 units. EBIT totaled $1,591 million, lower than $2,949 million in the corresponding quarter of 2021. The figure also lagged the consensus mark of $2,191.
In South America, revenues moved up 33% year over year to $0.6 billion in the quarter. Wholesale volume plunged 14% to 15,000 units. The unit’s pretax earnings increased to $50 million from a loss of $73 million reported in the prior-year quarter amid cost-cut and rejig efforts. The consensus mark was pegged at a loss of $78 million.
In Europe, revenues declined 2% year over year to $6.9 billion in the quarter. Wholesale volume slid 9% to 254,000 units. Pretax earnings for the segment totaled $207 million, falling from $341 million, but the reported EBIT beat the consensus mark of a loss of $35.6 million.
In China, revenues plummeted 32% year over year to $0.6 billion in the reported quarter. Wholesale volume dipped 15% to 128,000 units. Moreover, the pretax loss widened from the prior year’s loss of $15 million to $53 million. The metric was also wider than the consensus mark of a loss of $49.6 million.
In the International Markets Group, revenues were down 23% from the year-ago figure to $1.7 billion. Wholesale volume slid 33% to 55,000 units and pretax earnings totaled $96 million, falling from $201 million reported in the year-ago period. The figure lagged the consensus metric of $129 million.
First-quarter revenues from the Ford Credit unit came in at $2,281 million, lower than the year-ago revenues of $2,663 million and missing the Zacks Consensus Estimate of $2,636 million. Pretax earnings totaled $928 million, beating the consensus mark of $837 million.
Revenues from Ford Mobility came in at $84 million, surging from the year-earlier level of $11 million.
Financial Position
Ford reported a negative adjusted free cash flow (FCF) of $580 million during the quarter. It had cash and cash equivalents of $10,579 million as of Mar 31, 2022, compared with $10,963 million on Dec 31, 2021. The automotive long-term debt decreased to $17,158 million from $17,200 million as of the end of 2021.
Guidance
Ford’s 2022 projections remain unchanged. Adjusted EBIT for 2022 is between $11.5 billion and $12.5 billion, implying an uptick of 15-25% from the 2021 level. Moreover, 2022 vehicle wholesale volumes are anticipated to jump 10% to 15%. Adjusted FCF is envisioned in the range of $5.5-6.5 billion for 2022, suggesting a jump from $4.6 billion recorded in 2021.
BRP Group has an expected earnings growth rate of 9.1% for fiscal 2023. The Zacks Consensus Estimate for current-year earnings has been revised around 7.9% upward in the past 60 days.
BRP Group’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 68%, on average. The stock has declined 13.4% over the past year.
Dorman Products has an expected earnings growth rate of 18.32% for the current year. The Zacks Consensus Estimate for current-year earnings has been marginally revised 0.4% upward in the past 60 days.
Dorman Products’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. DORM pulled off a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 4.4% over the past year.
The Zacks Consensus Estimate for Standard Motor’s current-year earnings has been revised around 1.1% upward in the past 60 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 60.5%, on average. The stock has declined 1.8% over the past year.
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Ford (F) Q1 Earnings Lag Estimates, Revenues Shrink Y/Y
Ford Motor (F - Free Report) reported adjusted earnings of 38 cents per share in first-quarter 2022, missing the Zacks Consensus Estimate of 39 cents. Lower-than-expected profits in North America and a wider-than-expected pretax loss in China led to this underperformance. The bottom line compares unfavorably with the year-ago quarter’s earnings of 89 cents. The company’s consolidated first-quarter revenues came in at $34.5 billion, down 4.9% 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 first quarter, the total wholesale volume in the Ford Automotive segment fell 9% year over year to 966,000 units. Revenues from the segment declined 4% to $32.1 billion and missed the Zacks Consensus estimate of $39.1 billion. Earnings before interest and taxes came in at $1,891 million against the year-ago loss of $1,506 million.
In North America, revenues fell 3% year over year to $22.3 billion in the reported quarter. The wholesale volume declined 4% to 514,000 units. EBIT totaled $1,591 million, lower than $2,949 million in the corresponding quarter of 2021. The figure also lagged the consensus mark of $2,191.
In South America, revenues moved up 33% year over year to $0.6 billion in the quarter. Wholesale volume plunged 14% to 15,000 units. The unit’s pretax earnings increased to $50 million from a loss of $73 million reported in the prior-year quarter amid cost-cut and rejig efforts. The consensus mark was pegged at a loss of $78 million.
In Europe, revenues declined 2% year over year to $6.9 billion in the quarter. Wholesale volume slid 9% to 254,000 units. Pretax earnings for the segment totaled $207 million, falling from $341 million, but the reported EBIT beat the consensus mark of a loss of $35.6 million.
In China, revenues plummeted 32% year over year to $0.6 billion in the reported quarter. Wholesale volume dipped 15% to 128,000 units. Moreover, the pretax loss widened from the prior year’s loss of $15 million to $53 million. The metric was also wider than the consensus mark of a loss of $49.6 million.
In the International Markets Group, revenues were down 23% from the year-ago figure to $1.7 billion. Wholesale volume slid 33% to 55,000 units and pretax earnings totaled $96 million, falling from $201 million reported in the year-ago period. The figure lagged the consensus metric of $129 million.
First-quarter revenues from the Ford Credit unit came in at $2,281 million, lower than the year-ago revenues of $2,663 million and missing the Zacks Consensus Estimate of $2,636 million. Pretax earnings totaled $928 million, beating the consensus mark of $837 million.
Revenues from Ford Mobility came in at $84 million, surging from the year-earlier level of $11 million.
Financial Position
Ford reported a negative adjusted free cash flow (FCF) of $580 million during the quarter. It had cash and cash equivalents of $10,579 million as of Mar 31, 2022, compared with $10,963 million on Dec 31, 2021. The automotive long-term debt decreased to $17,158 million from $17,200 million as of the end of 2021.
Guidance
Ford’s 2022 projections remain unchanged. Adjusted EBIT for 2022 is between $11.5 billion and $12.5 billion, implying an uptick of 15-25% from the 2021 level. Moreover, 2022 vehicle wholesale volumes are anticipated to jump 10% to 15%. Adjusted FCF is envisioned in the range of $5.5-6.5 billion for 2022, suggesting a jump from $4.6 billion recorded in 2021.
Zacks Rank & Key Picks
F currently carries a Zacks Rank #3 (Hold).
Better-ranked players in the auto space include BRP Group, Inc. (DOOO - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Dorman Products (DORM - Free Report) and Standard Motor Products (SMP - Free Report) , each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
BRP Group has an expected earnings growth rate of 9.1% for fiscal 2023. The Zacks Consensus Estimate for current-year earnings has been revised around 7.9% upward in the past 60 days.
BRP Group’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 68%, on average. The stock has declined 13.4% over the past year.
Dorman Products has an expected earnings growth rate of 18.32% for the current year. The Zacks Consensus Estimate for current-year earnings has been marginally revised 0.4% upward in the past 60 days.
Dorman Products’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. DORM pulled off a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 4.4% over the past year.
The Zacks Consensus Estimate for Standard Motor’s current-year earnings has been revised around 1.1% upward in the past 60 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 60.5%, on average. The stock has declined 1.8% over the past year.