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Ford's Q3 Earnings Match Estimates, Increase Year Over Year

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Ford (F - Free Report) reported third-quarter 2024 adjusted earnings per share (EPS) of 49 cents, which came in line with the Zacks Consensus Estimate but increased from 39 cents recorded in the year-ago quarter. The company’s consolidated third-quarter revenues came in at $46.2 billion, up 5.4% year over year. F’s total automotive revenues came in at around $43.07 billion, surpassing the Zacks Consensus Estimate of $41.2 billion and higher than $41.18 billion generated in the year-ago quarter.

Ford Motor Company Price, Consensus and EPS Surprise

Ford Motor Company Price, Consensus and EPS Surprise

Ford Motor Company price-consensus-eps-surprise-chart | Ford Motor Company Quote

Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.

Segmental Performance

In the third quarter, total wholesale volume in the Ford Blue segment decreased 2% year over year to 721,000 units and fell short of our expectation of 725,000 units. Revenues from the segment increased 3% year over year to $26.2 billion and topped our estimate of $23.8 billion. Earnings before interest and taxes came in at $1.63 billion with an EBIT margin of 6.2% (down 50 basis points). EBIT missed our projection of $1.8 billion.

Total wholesale volume in the Ford Model e segment decreased 11% year over year to 32,000 units but came in line with our expectation. Revenues from the segment declined 33% year over year to $1.2 billion but missed our estimate of $1.38 billion on lower-than-expected average selling price of vehicles. The segment incurred loss before interest and taxes of $1.22 billion, wider than our model estimate of $1.18 billion.

Total wholesale volume in the Ford Pro segment increased 9% year over year to 342,000 but missed our expectation of 362,000 units. Revenues from the segment grew 13% year over year to $15.7 billion but missed our expectations of $16.58 billion. Earnings before interest and taxes came in at $1.8 billion with an EBIT margin of 11.6%. EBIT missed our projection of $2.1 billion.

Third-quarter revenues from the Ford Credit unit came in at $3.12 billion, up 19% year over year and above our estimate of $3.02 billion. Pretax earnings totaled $544 million, up 52% year over year.

Financial Position

Ford reported an adjusted free cash flow of $3.2 billion for the quarter. It had cash and cash equivalents of $23.4 billion as of Sept. 30, 2024. Long-term debt, excluding Ford Credit, totaled $19.07 billion at the end of the third quarter of 2024.

F declared its fourth-quarter 2024 dividend of 15 cents per share, payable on Dec. 2 to shareholders of record at the close of business on Nov. 7, 2024.

2024 Guidance

For full-year 2024, Ford expects EBIT of around $10 billion. Adjusted free cash flow is envisioned in the range of $7.5-$8.5 billion. Capital spending is expected in the range of $8-$8.5 billion. Ford forecasts 2024 EBIT from the Pro and Blue segments to be around $9 billion and $5 billion, respectively. Pretax profit from Ford Credit is anticipated at around $1.6 billion. The Ford Model e unit is anticipated to incur a full-year loss before interest and taxes of $5 billion.

Ford currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Key Releases From The Auto Space

Tesla (TSLA - Free Report) reported third-quarter adjusted earnings per share of 72 cents, which beat the Zacks Consensus Estimate of 58 cents and rose from the year-ago figure of 66 cents. Total revenues of $25.18 billion lagged the consensus mark of $25.57 billion but rose 7.2% year over year. The EV giant exited third-quarter 2024 with $33.6 billion of cash/cash equivalents/investments of $33.6 billion, up $2.9 billion from the second-quarter level, thanks to the FCF boost. TSLA generated free cash flow of $2.74 billion. Long-term debt and finance leases, net of the current portion, totaled $5.4 billion.

General Motors (GM - Free Report) reported third-quarter 2024 adjusted earnings of $2.96 per share, which surpassed the Zacks Consensus Estimate of $2.49. The bottom line also increased from the year-ago quarter’s level of $2.28. Revenues of $48.75 billion beat the Zacks Consensus Estimate of $44.29 billion and increased from $44.13 billion recorded in the year-ago period. The U.S. auto giant recorded an adjusted EBIT of $4.11 billion, higher than $3.56 billion in the prior-year quarter. Adjusted automotive free cash flow came in at $5.8 billion. GM had cash and cash equivalents of $23.7 billion as of Sept 30, 2024. The long-term automotive debt at the end of the quarter was $15.5 billion.

PACCAR (PCAR - Free Report) recorded earnings of $1.85 per share for the third quarter of 2024, which beat the Zacks Consensus Estimate of $1.82 but declined from $2.34 per share recorded in the year-ago period. Consolidated revenues (including trucks and financial services) came in at $8.24 billion, down from $8.70 billion in the corresponding quarter of 2023. Sales from Trucks, Parts and Others were $7.7 billion. PACCAR’s cash and marketable debt securities amounted to $9.2 billion as of Sept. 30, 2024, compared with $8.66 million as of Dec. 31, 2023. The trucking giant expects 2024 capex and R&D expenses in the band of $760-$800 million and $450-$470 million, respectively.


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