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Ford (F) Q2 Earnings Lag Estimates & Fall Y/Y, View Slashed
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Ford Motor Co. (F - Free Report) reported second-quarter 2018 adjusted earnings per share of 27 cents, missing the Zacks Consensus Estimate of 31 cents per share. Adjusted earnings in the prior-year quarter was 56 cents per share. The results were impacted by challenges faced by the company in China market and North American production disruption.
Ford is continuing with its strategy of redesigning business models by reallocating capital to augment competitiveness and attain higher returns. Second-quarter net income was $1.1 billion, reflecting a decrease of $0.9 billion from the year-ago quarter.
During the reported quarter, Ford logged automotive revenues of $35.9 billion, down from the prior-year quarter figure of $37.1 billion. Its Zacks Consensus Estimate for revenues was $35.5 billion.
Ford Motor Company Price, Consensus and EPS Surprise
During the reported quarter, wholesale volumes at the Ford Automotive segment decreased158,000 units to 1.49 million. Earnings before income and taxes (EBIT) decreased to $1.2 billion from $2.4 billion in the year-ago quarter.
In North America, revenues decreased $0.8 billion to $23.7 billion during the reported quarter. Wholesale volumes decreased 65,000 units year over year to 742,000. Further, EBIT decreased to $1.8 billion from $2.4 billion in second-quarter 2017.
In South America, revenues remained unchanged at $1.5 billion. Wholesale volumes rose 3,000 to 96,000 units. Pre-tax loss amounted to $178 million.
In Europe, revenues increased $0.5 billion to $7.6 billion. Wholesale volumes decreased 8,000 to around 367,000 units. The region incurred Pre-tax loss of $73 million during the quarter.
In the Middle East & Africa segment, revenues rose $0.2 billion to $0.8 billion. Wholesale volumes increased 3,000 to 27,000 units. The region recorded EBIT of $49 million.
In the Asia-Pacific region, revenues decreased $1.1 billion to $2.3 billion. Wholesale volumes declined 91,000 to 261,000 units. The region incurred pre-tax loss of $394 million.
Financial Services
Ford Credit generated EBT of $645 million, up from $619 million in the prior-year quarter.
Financial Position
Ford had cash and cash equivalents of $16.8 billion as of Jun 30, 2018, down from $17.9 billion as of Mar 31, 2018.
2018 Guidance
The company expects 2018 adjusted EPS of $1.30-$1.50, down from the earlier expectation of $1.45-$1.70. The company has revised down the earnings expectation primarily due to challenging quarter in Asia Pacific and Europe regions.
Oshkosh has an expected long-term growth rate of 18.3%. Over the past year, shares of the company have moved up 5.3%.
AB Volvo has an expected long-term growth rate of 15%. Over the past year, shares of the company have gained 2.9%.
Fox Factory has an expected long-term growth rate of 15.8%. Shares of the company have risen 30.2% over the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Ford (F) Q2 Earnings Lag Estimates & Fall Y/Y, View Slashed
Ford Motor Co. (F - Free Report) reported second-quarter 2018 adjusted earnings per share of 27 cents, missing the Zacks Consensus Estimate of 31 cents per share. Adjusted earnings in the prior-year quarter was 56 cents per share. The results were impacted by challenges faced by the company in China market and North American production disruption.
Ford is continuing with its strategy of redesigning business models by reallocating capital to augment competitiveness and attain higher returns. Second-quarter net income was $1.1 billion, reflecting a decrease of $0.9 billion from the year-ago quarter.
During the reported quarter, Ford logged automotive revenues of $35.9 billion, down from the prior-year quarter figure of $37.1 billion. Its Zacks Consensus Estimate for revenues was $35.5 billion.
Ford Motor Company Price, Consensus and EPS Surprise
Ford Motor Company Price, Consensus and EPS Surprise | Ford Motor Company Quote
Ford Automotive
During the reported quarter, wholesale volumes at the Ford Automotive segment decreased158,000 units to 1.49 million. Earnings before income and taxes (EBIT) decreased to $1.2 billion from $2.4 billion in the year-ago quarter.
In North America, revenues decreased $0.8 billion to $23.7 billion during the reported quarter. Wholesale volumes decreased 65,000 units year over year to 742,000. Further, EBIT decreased to $1.8 billion from $2.4 billion in second-quarter 2017.
In South America, revenues remained unchanged at $1.5 billion. Wholesale volumes rose 3,000 to 96,000 units. Pre-tax loss amounted to $178 million.
In Europe, revenues increased $0.5 billion to $7.6 billion. Wholesale volumes decreased 8,000 to around 367,000 units. The region incurred Pre-tax loss of $73 million during the quarter.
In the Middle East & Africa segment, revenues rose $0.2 billion to $0.8 billion. Wholesale volumes increased 3,000 to 27,000 units. The region recorded EBIT of $49 million.
In the Asia-Pacific region, revenues decreased $1.1 billion to $2.3 billion. Wholesale volumes declined 91,000 to 261,000 units. The region incurred pre-tax loss of $394 million.
Financial Services
Ford Credit generated EBT of $645 million, up from $619 million in the prior-year quarter.
Financial Position
Ford had cash and cash equivalents of $16.8 billion as of Jun 30, 2018, down from $17.9 billion as of Mar 31, 2018.
2018 Guidance
The company expects 2018 adjusted EPS of $1.30-$1.50, down from the earlier expectation of $1.45-$1.70. The company has revised down the earnings expectation primarily due to challenging quarter in Asia Pacific and Europe regions.
Zacks Rank and Stocks to Consider
Ford carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the auto space are Oshkosh Corporation (OSK - Free Report) , AB Volvo (VLVLY - Free Report) and Fox Factory Holding Corp. (FOXF - 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.
Oshkosh has an expected long-term growth rate of 18.3%. Over the past year, shares of the company have moved up 5.3%.
AB Volvo has an expected long-term growth rate of 15%. Over the past year, shares of the company have gained 2.9%.
Fox Factory has an expected long-term growth rate of 15.8%. Shares of the company have risen 30.2% over the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>