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Ford (F) Q4 Earnings Miss Estimates, Sales Grow 17% Y/Y
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Ford (F - Free Report) reported adjusted earnings of 51 cents per share in fourth-quarter 2022, missing the Zacks Consensus Estimate of 60 cents. Lower-than-expected profits from all but International Markets Group unit led to this downslide. The bottom line improved 96.2% from the year-ago quarter’s earnings of 26 cents. The company’s consolidated fourth-quarter revenues came in at $44 billion, rising 17% year over year.
Ford Motor Company Price, Consensus and EPS Surprise
In the fourth quarter, the total wholesale volume in the Ford Automotive segment increased 4% year over year to 1,147,000 units but missed the consensus metric of 1,209,000 units. Revenues from the segment increased 18% to $41.8 billion and surpassed the Zacks Consensus Estimate of $39.4 billion. Earnings before interest and taxes came in at $2,781 million, rising from the year-ago EBIT of $1,641 million but missing the consensus metric of $3,631 million.
In North America, revenues grew 20% year over year to $31 billion in the reported quarter and outperformed the consensus metric of $28.9 billion. The wholesale volume rose 6% to 635,000 units but lagged the consensus metric of 660,000 units. EBIT totaled $3,007 million, an increase from $1,822 million in the corresponding quarter of 2021. But the figure missed the consensus mark of $3,398 million.
In South America, revenues moved up 18% year over year to $0.9 billion in the quarter but missed the consensus mark of $1.21 billion. Wholesale volume increased 3% to 26,000 units. The figure, however, lagged the consensus mark of 35,090 units. The unit’s pretax earnings came in at $110 million, increasing from $36 million in the prior-year but missed the consensus mark of $138 million.
In Europe, revenues jumped 7% year over year to $6.1 billion in the quarter but fell short of the consensus mark of $6.15 billion. Wholesale volume increased 24% to 226,000 units and beat the consensus mark of 259,000 units. The segment incurred pretax loss of $374 million as against the estimate of pretax profit of $180 million. The loss was also wider than $159 million incurred in the year-ago period.
In China, revenues nosedived 42% year over year to $0.3 billion in the reported quarter and lagged the consensus mark of $0.57 billion. Wholesale volume also fell 37% to 117,000 units and missed the consensus metric of 162,000 units. The pretax loss widened from the prior year period’s loss of $150 million to $205 million. The loss was also wider than the consensus mark of a loss of $143 million.
In the International Markets Group, revenues soared 42% from the year-ago figure to $3.3 billion and topped the consensus mark of $2.63 billion. Wholesale volume rose 29% to 103,000 units and outperformed the consensus metric of 93,000 units. Pretax earnings totaled $243 million, rising from $92 million reported in the year-ago period and crossing the consensus metric of $117 million.
Fourth-quarter revenues from the Ford Credit unit came in at $2,254 million, down 5% year over year but coming ahead of the consensus mark of $2,235 million. Pretax earnings totaled $200 million, falling from $1,055 million in the year-ago quarter and lagging the consensus mark of $338 million.
Ford Mobility unit incurred losses of $0.2 billion in the quarter under review.
Financial Position
Ford reported adjusted free cash flow (FCF) of $2.4 billion during the quarter. It had cash and cash equivalents of $25,134 million as of Dec 31, 2022, compared with $20,540 million on Dec 31, 2021. Long-term debt excluding Ford Credit totaled $19.2 billion at the end of 2022, up from $17.2 billion as of Dec 31, 2021.
Along with the regular first-quarter dividend of 15 cents per, the company declared supplemental dividend of 65 cents per share, aided by robust FCF.
Guidance
Adjusted EBIT for 2023 is estimated to be in the range of $9 billion - $11 billion. Adjusted FCF is envisioned at $6 billion. Ford anticipates headwinds from mild recession in the U.S. and moderate recession in Europe and a lower profit from Ford Credit.
Zacks Rank & Key Picks
Ford currently carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same industry are Renault (RNLSY - Free Report) and Harley-Davidson (HOG - Free Report) . RNLSY sports a Zacks Rank #1 (Strong Buy) while HOG carries a Zacks Rank #2 (Buy).
Renault designs, manufactures, markets and repairs vehicles. It primarily offers passenger cars and light commercial vehicles; electric vehicles; sports vehicles and power train components. The Zacks Consensus Estimate for RNLSY’s 2023 earnings implies year-over-year growth of 193.01%.
Harley-Davidson is one of the leading motorcycle makers globally and the parent entity of company groups doing business as Harley-Davidson Motor Company and Harley-Davidson Financial Services. The Zacks Consensus Estimates for HOG’s 2023 sales and earnings imply year-over-year growth of 2.49% and 1.03%, respectively.
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Ford (F) Q4 Earnings Miss Estimates, Sales Grow 17% Y/Y
Ford (F - Free Report) reported adjusted earnings of 51 cents per share in fourth-quarter 2022, missing the Zacks Consensus Estimate of 60 cents. Lower-than-expected profits from all but International Markets Group unit led to this downslide. The bottom line improved 96.2% from the year-ago quarter’s earnings of 26 cents. The company’s consolidated fourth-quarter revenues came in at $44 billion, rising 17% 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 fourth quarter, the total wholesale volume in the Ford Automotive segment increased 4% year over year to 1,147,000 units but missed the consensus metric of 1,209,000 units. Revenues from the segment increased 18% to $41.8 billion and surpassed the Zacks Consensus Estimate of $39.4 billion. Earnings before interest and taxes came in at $2,781 million, rising from the year-ago EBIT of $1,641 million but missing the consensus metric of $3,631 million.
In North America, revenues grew 20% year over year to $31 billion in the reported quarter and outperformed the consensus metric of $28.9 billion. The wholesale volume rose 6% to 635,000 units but lagged the consensus metric of 660,000 units. EBIT totaled $3,007 million, an increase from $1,822 million in the corresponding quarter of 2021. But the figure missed the consensus mark of $3,398 million.
In South America, revenues moved up 18% year over year to $0.9 billion in the quarter but missed the consensus mark of $1.21 billion. Wholesale volume increased 3% to 26,000 units. The figure, however, lagged the consensus mark of 35,090 units. The unit’s pretax earnings came in at $110 million, increasing from $36 million in the prior-year but missed the consensus mark of $138 million.
In Europe, revenues jumped 7% year over year to $6.1 billion in the quarter but fell short of the consensus mark of $6.15 billion. Wholesale volume increased 24% to 226,000 units and beat the consensus mark of 259,000 units. The segment incurred pretax loss of $374 million as against the estimate of pretax profit of $180 million. The loss was also wider than $159 million incurred in the year-ago period.
In China, revenues nosedived 42% year over year to $0.3 billion in the reported quarter and lagged the consensus mark of $0.57 billion. Wholesale volume also fell 37% to 117,000 units and missed the consensus metric of 162,000 units. The pretax loss widened from the prior year period’s loss of $150 million to $205 million. The loss was also wider than the consensus mark of a loss of $143 million.
In the International Markets Group, revenues soared 42% from the year-ago figure to $3.3 billion and topped the consensus mark of $2.63 billion. Wholesale volume rose 29% to 103,000 units and outperformed the consensus metric of 93,000 units. Pretax earnings totaled $243 million, rising from $92 million reported in the year-ago period and crossing the consensus metric of $117 million.
Fourth-quarter revenues from the Ford Credit unit came in at $2,254 million, down 5% year over year but coming ahead of the consensus mark of $2,235 million. Pretax earnings totaled $200 million, falling from $1,055 million in the year-ago quarter and lagging the consensus mark of $338 million.
Ford Mobility unit incurred losses of $0.2 billion in the quarter under review.
Financial Position
Ford reported adjusted free cash flow (FCF) of $2.4 billion during the quarter. It had cash and cash equivalents of $25,134 million as of Dec 31, 2022, compared with $20,540 million on Dec 31, 2021. Long-term debt excluding Ford Credit totaled $19.2 billion at the end of 2022, up from $17.2 billion as of Dec 31, 2021.
Along with the regular first-quarter dividend of 15 cents per, the company declared supplemental dividend of 65 cents per share, aided by robust FCF.
Guidance
Adjusted EBIT for 2023 is estimated to be in the range of $9 billion - $11 billion. Adjusted FCF is envisioned at $6 billion. Ford anticipates headwinds from mild recession in the U.S. and moderate recession in Europe and a lower profit from Ford Credit.
Zacks Rank & Key Picks
Ford currently carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same industry are Renault (RNLSY - Free Report) and Harley-Davidson (HOG - Free Report) . RNLSY sports a Zacks Rank #1 (Strong Buy) while HOG carries a Zacks Rank #2 (Buy).
Renault designs, manufactures, markets and repairs vehicles. It primarily offers passenger cars and light commercial vehicles; electric vehicles; sports vehicles and power train components. The Zacks Consensus Estimate for RNLSY’s 2023 earnings implies year-over-year growth of 193.01%.
Harley-Davidson is one of the leading motorcycle makers globally and the parent entity of company groups doing business as Harley-Davidson Motor Company and Harley-Davidson Financial Services. The Zacks Consensus Estimates for HOG’s 2023 sales and earnings imply year-over-year growth of 2.49% and 1.03%, respectively.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.