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Ford's (F) Q1 Earnings & Revenues Beat Estimates, Up Y/Y

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Ford Motor Co. (F - Free Report) ) posted adjusted earnings per share of 43 cents in the first quarter of 2018. The reported figure was 3 cents higher than the year-ago figure. Also, earnings beat the Zacks Consensus Estimate of 41 cents per share.

The company identified an incremental $11.5 billion of costs and efficiency opportunities. It expects adjusted EBIT margin of 8% by 2020, two years earlier than the previous target. It also intends to lower the cumulative capital spending by $5 billion between 2019 and 2022.

First-quarter net income was $1.7 billion, reflecting an increase of $0.1 billion from the year-ago quarter.

During the reported quarter, Ford logged automotive revenues of $39 billion, up from the prior-year quarter figure of $36.5 billion. Its Zacks Consensuses Estimate for revenues was $37 billion.

Ford Automotive

During the reported quarter, wholesale volumes at the Ford Automotive segment decreased 41,000 units to 1.66 million. Earnings before income and taxes (EBIT) decreased to $1.7 billion from $2.1 billion in the year-ago quarter.

In North America, during the reported quarter, revenues increased $0.8 billion to $24.8 billion. Wholesale volumes increased 25,000 units year over year to 796,000. Further, EBIT decreased to $1.9 billion from $2.1 billion in first-quarter 2017.

In South America, revenues increased $0.2 billion to $1.3 billion. Wholesale volumes rose 16,000 to 86,000 units. Pre-tax loss amounted to $149 million.

In Europe, revenues increased $1.3 billion to $8.9 billion. Wholesale volumes remained flat around 449,000 units. The region incurred EBIT of $119 million during the quarter.

In the Middle East & Africa segment, revenues remained flat around $0.6 billion. Wholesale volumes plunged 5,000 to 25,000 units. The region incurred pre-tax loss of $54 million.

In the Asia-Pacific region, revenues increased $0.2 billion to $3.4 billion. Wholesale volumes declined 77,000 to 306,000 units. The region generated pre-tax loss of $119 million.

Financial Services

Ford Credit generated EBIT of $641 million, up from $481 million in the prior-year quarter.

Financial Position

Ford had cash and cash equivalents of $17.9 billion as of Mar 31, 2018, up from $9.6 billion as of Dec 31, 2017.

2018 Guidance

The company expects 2018 adjusted EPS of $1.45-$1.70 and an effective tax rate of 15%. Revenues in 2018 are anticipated to be modestly higher than 2017.

Zacks Rank and Top Picks

Ford carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same space include Fox Factory Holding Corp. (FOXF - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Honda Motor Co., Ltd. (HMC - Free Report) , each carrying a Zacks Rank #2 (Buy).

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

Fox Factory Holding has expected long-term growth rate of 10.5%. In the past year, shares of the company have returned 14.2%.

Allison Transmission has expected long-term growth rate of 10%. In a year, shares of the company have advanced 0.7%.

Honda has an expected long-term growth rate of 4.8%. In a year, shares of the company have returned 19.2%.

Ford Motor Company Price, Consensus and EPS Surprise

Ford Motor Company Price, Consensus and EPS Surprise | Ford Motor Company Quote

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