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Why Is Ford Motor (F) Up 6.6% Since Last Earnings Report?
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It has been about a month since the last earnings report for Ford Motor Company (F - Free Report) . Shares have added about 6.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ford Motor due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Ford Q3 Earnings Match Estimates
Ford 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.
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 and 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -16.76% due to these changes.
VGM Scores
At this time, Ford Motor has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Ford Motor has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Ford Motor belongs to the Zacks Automotive - Domestic industry. Another stock from the same industry, General Motors (GM - Free Report) , has gained 6.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.
General Motors reported revenues of $48.76 billion in the last reported quarter, representing a year-over-year change of +10.5%. EPS of $2.96 for the same period compares with $2.28 a year ago.
For the current quarter, General Motors is expected to post earnings of $1.75 per share, indicating a change of +41.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +1% over the last 30 days.
General Motors has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Why Is Ford Motor (F) Up 6.6% Since Last Earnings Report?
It has been about a month since the last earnings report for Ford Motor Company (F - Free Report) . Shares have added about 6.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ford Motor due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Ford Q3 Earnings Match Estimates
Ford 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.
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 and 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -16.76% due to these changes.
VGM Scores
At this time, Ford Motor has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Ford Motor has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Ford Motor belongs to the Zacks Automotive - Domestic industry. Another stock from the same industry, General Motors (GM - Free Report) , has gained 6.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.
General Motors reported revenues of $48.76 billion in the last reported quarter, representing a year-over-year change of +10.5%. EPS of $2.96 for the same period compares with $2.28 a year ago.
For the current quarter, General Motors is expected to post earnings of $1.75 per share, indicating a change of +41.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +1% over the last 30 days.
General Motors has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.