Back to top

Image: Bigstock

Why Is Ford Motor Company (F) Up 1.8% Since Last Earnings Report?

Read MoreHide Full Article

A month has gone by since the last earnings report for Ford Motor Company (F - Free Report) . Shares have added about 1.8% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Ford Motor Company due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Ford Q1 Earnings Top Estimates & Rise Y/Y

Ford 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.

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.


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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review.

VGM Scores

At this time, Ford Motor Company has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.


Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Ford Motor Company has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Ford Motor Company is part of the Zacks Automotive - Domestic industry. Over the past month, Tesla (TSLA - Free Report) , a stock from the same industry, has gained 27%. The company reported its results for the quarter ended March 2023 more than a month ago.

Tesla reported revenues of $23.33 billion in the last reported quarter, representing a year-over-year change of +24.4%. EPS of $0.85 for the same period compares with $1.07 a year ago.

Tesla is expected to post earnings of $0.82 per share for the current quarter, representing a year-over-year change of +7.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.5%.

Tesla has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Ford Motor Company (F) - free report >>

Tesla, Inc. (TSLA) - free report >>

Published in