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Ford (F) Q1 Earnings Beat on Better-Than-Expected Sales
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Ford (F - Free Report) reported adjusted earnings of 63 cents per share for first-quarter 2023, beating the Zacks Consensus Estimate of 40 cents and increasing from 38 cents recorded in the year-ago quarter. Higher-than-expected automotive revenues resulted in the outperformance. The company’s consolidated first-quarter revenues came in at $41,474 million, rising 20.3% year over year.
The U.S. legacy automaker has started reporting its automotive results under three business segments — Ford Model e, Ford Blue and Ford Pro. Till now, it used to report on the basis of geographical regions.While Ford Blue focuses on the firm’s legacy gas-powered business, Ford Model e focuses on EVs, advanced technologies and several related aspects to support electrification plans. Meanwhile, Ford Pro will deal with commercial vehicles and services.
In the first quarter, total wholesale volume in the Ford Blue segment increased 6% year over year to 706,000. Revenues from the segment increased 21% year over year to $25 billion. Earnings before interest and taxes came in at $2,623 million with EBIT margin of 10.4%.
Total wholesale volume in the Ford Model e segment decreased 32% year over year to 12,000. Revenues from the segment tailed off 27% year over year to $0.7 billion. Loss before interest and taxes came in at $722 million with EBIT margin of negative 102.1%.
Total wholesale volume in the Ford Pro segment increased 18% year over year to 337,000. Revenues from the segment grew 28% year over year to $13.2 billion. Earnings before interest and taxes came in at $1,366 million with EBIT margin of 10.3%.
Overall, Ford’s total automotive revenues came in at around $39 billion, surpassing the Zacks Consensus Estimate of $36.7 billion.
First-quarter revenues from the Ford Credit unit came in at $2,389 million, up 4.7% year over year, and came ahead of the consensus mark of $2,277 million. Pretax earnings totaled $303 million, falling from $928 million in the year-ago quarter and lagging the consensus mark of $374 million.
Financial Position
Ford reported adjusted free cash flow (FCF) of $693 million during the quarter. It had cash and cash equivalents of $22,144 million as of Mar 31, 2023, compared with $25,134 million on Dec 31, 2022. Long-term debt excluding Ford Credit totaled $19.1 billion at the end of first quarter of 2023, down from $19.2 billion as of Dec 31, 2022.
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 2023 EBIT from Ford Blue and Ford Pro to come in at $7 billion and $6 billion, respectively. Meanwhile, Ford Model e is expected to incur a pretax loss of around $3 billion this year.
Peer Releases
Tesla (TSLA - Free Report) reported first-quarter 2023 earnings of 85 cents per share, down from the year-ago figure of $1.07 but outpaced the Zacks Consensus Estimate of 83 cents. This marked the ninth straight quarter of earnings beat for the electric vehicle behemoth. Higher-than-expected revenues from its Energy Generation/Storage and Services/Other segments resulted in this outperformance.
Total revenues came in at $23,329 million, witnessing year-over-year growth of 24%. However, the top line missed the consensus mark of $23,472 million. Tesla reported an overall gross margin of 19.3% for the reported quarter. The operating margin came in at 11.4%. Management stuck to its target of around 50% growth in deliveries in the foreseeable future. For 2023, it expects deliveries to reach 1.8 million units.
General Motors (GM - Free Report) reported first-quarter 2023 adjusted earnings of $2.21 per share, surpassing the Zacks Consensus Estimate of $1.64. Higher-than-expected operating profits from GMNA, GMI and Financial segments led to the outperformance. The bottom line also rose from the year-ago quarter’s earnings of $2.09 per share.
Revenues of $39,985 million beat the Zacks Consensus Estimate of $38,677.9 million and increased from $35,979 million recorded in the year-ago period. However, the company recorded an adjusted EBIT of $3,803 million, lower than $4,044 million in the prior-year quarter. The automaker’s share in the GM market was 8.6% in the reported quarter, down from the year-ago quarter’s 9%.
PACCAR’s (PCAR - Free Report) earnings of $2.25 per share for first-quarter 2023 beat the Zacks Consensus Estimate of $1.82 and rocketed 95.6% from the year-ago figure. Higher-than-expected pretax income from Trucks, Parts and Financial Services segments resulted in the outperformance. Consolidated revenues (including trucks and financial services) came in at $8,473.3 million, up from $6,472.6 million recorded in the corresponding quarter of 2022.
PACCAR’s cash and marketable debt securities amounted to $5,922.2 million as of Mar 31, 2023, compared with $6,158.9 million on Dec 31, 2022. The company paid cash dividends of 25 cents per share during the reported quarter. Capex and R&D expenses for 2023 are envisioned in the band of $600-$650 million and $380-$420 million, respectively.
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Ford (F) Q1 Earnings Beat on Better-Than-Expected Sales
Ford (F - Free Report) reported adjusted earnings of 63 cents per share for first-quarter 2023, beating the Zacks Consensus Estimate of 40 cents and increasing from 38 cents recorded in the year-ago quarter. Higher-than-expected automotive revenues resulted in the outperformance. The company’s consolidated first-quarter revenues came in at $41,474 million, rising 20.3% year over year.
Ford currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ford Motor Company Price, Consensus and EPS Surprise
Ford Motor Company price-consensus-eps-surprise-chart | Ford Motor Company Quote
Segmental Performance
The U.S. legacy automaker has started reporting its automotive results under three business segments — Ford Model e, Ford Blue and Ford Pro. Till now, it used to report on the basis of geographical regions.While Ford Blue focuses on the firm’s legacy gas-powered business, Ford Model e focuses on EVs, advanced technologies and several related aspects to support electrification plans. Meanwhile, Ford Pro will deal with commercial vehicles and services.
In the first quarter, total wholesale volume in the Ford Blue segment increased 6% year over year to 706,000. Revenues from the segment increased 21% year over year to $25 billion. Earnings before interest and taxes came in at $2,623 million with EBIT margin of 10.4%.
Total wholesale volume in the Ford Model e segment decreased 32% year over year to 12,000. Revenues from the segment tailed off 27% year over year to $0.7 billion. Loss before interest and taxes came in at $722 million with EBIT margin of negative 102.1%.
Total wholesale volume in the Ford Pro segment increased 18% year over year to 337,000. Revenues from the segment grew 28% year over year to $13.2 billion. Earnings before interest and taxes came in at $1,366 million with EBIT margin of 10.3%.
Overall, Ford’s total automotive revenues came in at around $39 billion, surpassing the Zacks Consensus Estimate of $36.7 billion.
First-quarter revenues from the Ford Credit unit came in at $2,389 million, up 4.7% year over year, and came ahead of the consensus mark of $2,277 million. Pretax earnings totaled $303 million, falling from $928 million in the year-ago quarter and lagging the consensus mark of $374 million.
Financial Position
Ford reported adjusted free cash flow (FCF) of $693 million during the quarter. It had cash and cash equivalents of $22,144 million as of Mar 31, 2023, compared with $25,134 million on Dec 31, 2022. Long-term debt excluding Ford Credit totaled $19.1 billion at the end of first quarter of 2023, down from $19.2 billion as of Dec 31, 2022.
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 2023 EBIT from Ford Blue and Ford Pro to come in at $7 billion and $6 billion, respectively. Meanwhile, Ford Model e is expected to incur a pretax loss of around $3 billion this year.
Peer Releases
Tesla (TSLA - Free Report) reported first-quarter 2023 earnings of 85 cents per share, down from the year-ago figure of $1.07 but outpaced the Zacks Consensus Estimate of 83 cents. This marked the ninth straight quarter of earnings beat for the electric vehicle behemoth. Higher-than-expected revenues from its Energy Generation/Storage and Services/Other segments resulted in this outperformance.
Total revenues came in at $23,329 million, witnessing year-over-year growth of 24%. However, the top line missed the consensus mark of $23,472 million. Tesla reported an overall gross margin of 19.3% for the reported quarter. The operating margin came in at 11.4%. Management stuck to its target of around 50% growth in deliveries in the foreseeable future. For 2023, it expects deliveries to reach 1.8 million units.
General Motors (GM - Free Report) reported first-quarter 2023 adjusted earnings of $2.21 per share, surpassing the Zacks Consensus Estimate of $1.64. Higher-than-expected operating profits from GMNA, GMI and Financial segments led to the outperformance. The bottom line also rose from the year-ago quarter’s earnings of $2.09 per share.
Revenues of $39,985 million beat the Zacks Consensus Estimate of $38,677.9 million and increased from $35,979 million recorded in the year-ago period. However, the company recorded an adjusted EBIT of $3,803 million, lower than $4,044 million in the prior-year quarter. The automaker’s share in the GM market was 8.6% in the reported quarter, down from the year-ago quarter’s 9%.
PACCAR’s (PCAR - Free Report) earnings of $2.25 per share for first-quarter 2023 beat the Zacks Consensus Estimate of $1.82 and rocketed 95.6% from the year-ago figure. Higher-than-expected pretax income from Trucks, Parts and Financial Services segments resulted in the outperformance. Consolidated revenues (including trucks and financial services) came in at $8,473.3 million, up from $6,472.6 million recorded in the corresponding quarter of 2022.
PACCAR’s cash and marketable debt securities amounted to $5,922.2 million as of Mar 31, 2023, compared with $6,158.9 million on Dec 31, 2022. The company paid cash dividends of 25 cents per share during the reported quarter. Capex and R&D expenses for 2023 are envisioned in the band of $600-$650 million and $380-$420 million, respectively.