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.
Will Automotive Segment Sales Aid Ford (F) in Q1 Earnings?
Read MoreHide Full Article
Ford (F - Free Report) is slated to release first-quarter 2023 results on May 2, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 37 cents a share. The bottom-line projection implies a year-over-year decline of 2.63%. The Zacks Consensus Estimate for Ford’s first-quarter earnings per share has moved north by 2 cents in the past seven days.
The U.S. auto biggie missed earnings estimates in the last reported quarter amid lower-than-expected profits from all but the International Markets Group unit. Over the trailing four quarters, Ford surpassed earnings estimates once and missed on the other three occasions, the average surprise being 9.34%. This is depicted in the graph below:
Ford’s fourth-quarter adjusted earnings came in at 51 cents per share, missing the Zacks Consensus Estimate of 60 cents. The bottom line rose 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. Revenues from the Automotive segment increased 18% to $41.8 billion and surpassed the Zacks Consensus Estimate of $39.4 billion.
Ford reported an adjusted free cash flow 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. The automotive long-term debt increased to $19.2 billion from $17.2 billion as of the end of 2022.
Things to Note Ahead of Q1 Release
The Automotive segment is the biggest contributor to Ford’s consolidated revenues. A huge part of Ford’s overall performance is attributable to the performance of the Automotive segment, which appears impressive with its strong vehicle line-up of F-series trucks, Maverick pickup and SUV models, including Escape, Explorer, Expedition, EcoSport and Edge.
Ford’s first-quarter revenues are likely to have been aided by a projected increase in total wholesale units. The Zacks Consensus Estimate for total wholesale shipments worldwide is pegged at 1,015,000 units, indicating an increase from 966,000 units in the year-ago period. The consensus mark for first-quarter revenues from automotive sales is $34,436 million, implying an uptick from $32,111 million recorded in the corresponding quarter of 2022.
The Zacks Consensus Estimate for adjusted EBIT from the segment is pegged at $2,219 million, implying growth from $1,891 million recorded in the first quarter of 2022.
The consensus mark for revenues from Ford Credit is pegged at $2,277 million, implying a decrease from $2,281 million. The consensus mark for adjusted EBIT from the segment is $374 million, suggesting a fall from $928 million in the first quarter of 2022.
The consensus mark for revenues from Ford Mobility is pegged at $50 million, implying a decline from $84 million. The consensus mark for loss before interest and taxes from the segment is $209 million.
While estimates for Ford Credit and Mobility segments suggest a year-over-year decline, automotive revenues growth is likely to more than offset the decline in the to-be-reported quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Ford for the to-be-reported quarter, as it has the right combination of the two key ingredients. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
Earnings ESP: Ford has an Earnings ESP of +5.27%. This is because the Most Accurate Estimate is pegged 2 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank of 3 (Hold).
Other Stocks With the Favorable Combination
Let’s take a look at some other players from the auto space that, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
BorgWarnerInc. (BWA - Free Report) will release first-quarter 2023 results on May 4. The company has an Earnings ESP of +5.88% and a Zacks Rank #3.
The Zacks Consensus Estimate for BorgWarner’s to-be-reported quarter’s earnings and revenues is pegged at $1.13 per share and $4.21 billion, respectively. BWA surpassed earnings estimates in all trailing four quarters in fiscal year 2022, the average surprise being 24.02%.
The Zacks Consensus Estimate for American Axle’s to-be-reported quarter’s loss and revenues is pegged at 6 cents per share and $1.51 billion, respectively. AXL surpassed earnings estimates in three out of the trailing four quarters and missed in one in fiscal year 2022, the average surprise being 325.18%.
Aeva Technologies, Inc (AEVA - Free Report) will release first-quarter 2023 results on May 10. The company has an Earnings ESP of +6.25% and a Zacks Rank #3.
The Zacks Consensus Estimate for Aeva’s to-be-reported quarter’s loss and revenues is pegged at 16 cents per share and $0.88 million, respectively. AEVA surpassed earnings estimates in three out of the trailing four quarters and missed in one in fiscal year 2022, the average surprise being 13.68%.
Image: Bigstock
Will Automotive Segment Sales Aid Ford (F) in Q1 Earnings?
Ford (F - Free Report) is slated to release first-quarter 2023 results on May 2, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 37 cents a share. The bottom-line projection implies a year-over-year decline of 2.63%. The Zacks Consensus Estimate for Ford’s first-quarter earnings per share has moved north by 2 cents in the past seven days.
The U.S. auto biggie missed earnings estimates in the last reported quarter amid lower-than-expected profits from all but the International Markets Group unit. Over the trailing four quarters, Ford surpassed earnings estimates once and missed on the other three occasions, the average surprise being 9.34%. This is depicted in the graph below:
Ford Motor Company Price and EPS Surprise
Ford Motor Company price-eps-surprise | Ford Motor Company Quote
Q4 Highlights
Ford’s fourth-quarter adjusted earnings came in at 51 cents per share, missing the Zacks Consensus Estimate of 60 cents. The bottom line rose 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. Revenues from the Automotive segment increased 18% to $41.8 billion and surpassed the Zacks Consensus Estimate of $39.4 billion.
Ford reported an adjusted free cash flow 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. The automotive long-term debt increased to $19.2 billion from $17.2 billion as of the end of 2022.
Things to Note Ahead of Q1 Release
The Automotive segment is the biggest contributor to Ford’s consolidated revenues. A huge part of Ford’s overall performance is attributable to the performance of the Automotive segment, which appears impressive with its strong vehicle line-up of F-series trucks, Maverick pickup and SUV models, including Escape, Explorer, Expedition, EcoSport and Edge.
Ford’s first-quarter revenues are likely to have been aided by a projected increase in total wholesale units. The Zacks Consensus Estimate for total wholesale shipments worldwide is pegged at 1,015,000 units, indicating an increase from 966,000 units in the year-ago period. The consensus mark for first-quarter revenues from automotive sales is $34,436 million, implying an uptick from $32,111 million recorded in the corresponding quarter of 2022.
The Zacks Consensus Estimate for adjusted EBIT from the segment is pegged at $2,219 million, implying growth from $1,891 million recorded in the first quarter of 2022.
The consensus mark for revenues from Ford Credit is pegged at $2,277 million, implying a decrease from $2,281 million. The consensus mark for adjusted EBIT from the segment is $374 million, suggesting a fall from $928 million in the first quarter of 2022.
The consensus mark for revenues from Ford Mobility is pegged at $50 million, implying a decline from $84 million. The consensus mark for loss before interest and taxes from the segment is $209 million.
While estimates for Ford Credit and Mobility segments suggest a year-over-year decline, automotive revenues growth is likely to more than offset the decline in the to-be-reported quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Ford for the to-be-reported quarter, as it has the right combination of the two key ingredients. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
Earnings ESP: Ford has an Earnings ESP of +5.27%. This is because the Most Accurate Estimate is pegged 2 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank of 3 (Hold).
Other Stocks With the Favorable Combination
Let’s take a look at some other players from the auto space that, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
BorgWarner Inc. (BWA - Free Report) will release first-quarter 2023 results on May 4. The company has an Earnings ESP of +5.88% and a Zacks Rank #3.
The Zacks Consensus Estimate for BorgWarner’s to-be-reported quarter’s earnings and revenues is pegged at $1.13 per share and $4.21 billion, respectively. BWA surpassed earnings estimates in all trailing four quarters in fiscal year 2022, the average surprise being 24.02%.
American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) will release first-quarter 2023 results on May 5. The company has an Earnings ESP of +65.22% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Axle’s to-be-reported quarter’s loss and revenues is pegged at 6 cents per share and $1.51 billion, respectively. AXL surpassed earnings estimates in three out of the trailing four quarters and missed in one in fiscal year 2022, the average surprise being 325.18%.
Aeva Technologies, Inc (AEVA - Free Report) will release first-quarter 2023 results on May 10. The company has an Earnings ESP of +6.25% and a Zacks Rank #3.
The Zacks Consensus Estimate for Aeva’s to-be-reported quarter’s loss and revenues is pegged at 16 cents per share and $0.88 million, respectively. AEVA surpassed earnings estimates in three out of the trailing four quarters and missed in one in fiscal year 2022, the average surprise being 13.68%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.