Ford tops fourth-quarter estimates, guides toward strong 2024 (2024)

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Ford CEO Jim Farley poses for a photo before announcing at a press conference that Ford Motor Company will be partnering with the world's largest battery company, China-based Contemporary Amperex Technology, to create an electric vehicle battery plant in Marshall, Michigan, on Feb. 13, 2023, in Romulus, Michigan.

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DETROIT — Ford Motor beat Wall Street's top- and bottom-line expectations for the fourth quarter while forecasting better-than-expected results for 2024.

The company's full-year forecast calls for adjusted earnings before interest and taxes, or EBIT, of between $10 billion and $12 billion, adjusted free cash flow of $6 billion to $7 billion and capital spending of $8 billion to $9.5 billion.

Analysts had expected Ford's adjusted earnings guidance to be roughly $9 billion to $11 billion, according to investor notes from several analysts.

The automaker also announced a special dividend of 18 cents per share in addition to a first-quarter regular dividend of 15 cents per share. The dividends are payable March 1 to shareholders of record at the close of business Feb. 16.

Shares of Ford were up roughly 6% during after-hours trading, adding to a 4.1% increase during trading Tuesday to close at $12.07.

Here's how Ford did during the fourth quarter compared with what Wall Street expected, based on average estimates compiled by LSEG, formerly known as Refinitiv:

  • Earnings: 29 cents per share adjusted vs. 14 cents per share adjusted, expected
  • Automotive revenue: $43.2 billion vs. $40.12 billion expected

Ford CEO Jim Farley described last year as a "foundational year" for the automaker, specifically calling out several cost improvements, high gross margin on its hands-free BlueCruise highway system as well as hybrid vehicles, which the company expects to increase sales of by 40% this year.

"It was a solid year, but I want to be really clear we are nowhere near our earnings potential for Ford Motor Co.," Farley told investors Tuesday. "We are really positioned well this year for growth and profitability, for revenues as well."

For the fourth quarter, Ford reported a net loss of $526 million, or 13 cents per share, compared to a profit of $1.29 billion, or 32 cents per share, during the same period a year earlier. Adjusting for one-time items, the company reported earnings per share of 29 cents.

Overall revenue during the period increased about 4% to $46 billion, up from about $44 billion a year earlier. Adjusted EBIT declined 59% to $1.05 billion from the year-ago period.

Adjusted earnings of Ford's traditional business, known as Ford Blue, were down about 48% during the fourth quarter compared to a year earlier to $813 million. Its Ford Pro commercial business earned $1.81 billion, up 25% from a year earlier. Ford's Model e electric vehicle unit posted a $1.57 billion loss from October through December, more than doubling a loss of $631 million during the fourth quarter of 2022.

Ford tops fourth-quarter estimates, guides toward strong 2024 (1)

Ford's stock during the past year.

For the full year 2023, Ford reported $10.42 billion in adjusted EBIT, in line with 2022; revenue of $176.2 billion, up 11% compared to the prior year; and adjusted free cash flow of $6.8 billion, down $2.3 billion from the year earlier. Net income was $4.33 billion, up from a $2.15 billion loss in 2022.

The company's traditional and fleet businesses assisted in offsetting $4.7 billion in losses for its EV business.

Ford in November lowered its full-year forecast in light ofcontract negotiationswith the United Auto Workers union.

Ford Chief Financial Officer John Lawler said Tuesday that the company continues to look for ways to offset increasing labor costs due to the new UAW contract, which the company said is expected to cost $8.8 billion over the life of the deal, ending in April 2028. Ford has already announced plans to delay or cut spending on several EV products.

"All of our EV teams are ruthlessly focused on cost and efficiency in our EV products because the ultimate competition is going to be the affordable Tesla and the Chinese [automakers]" Farley said.

Ford is expected to face headwinds this year, including lower vehicle prices, warranty costs and continued losses for all-electric vehicles. Bright spots are expected to be its Ford Pro fleet unit and traditional Ford Blue internal combustion engine business.

— CNBC's Michael Bloom contributed to this report.

Ford tops fourth-quarter estimates, guides toward strong 2024 (2024)


Ford tops fourth-quarter estimates, guides toward strong 2024? ›

Ford beat Wall Street's top- and bottom-line expectations for the fourth quarter while forecasting better-than-expected results for 2024. The company's forecast for 2024 includes adjusted earnings before interest and taxes of between $10 billion and $12 billion.

What is the Ford forecast for 2024? ›

Meanwhile, Ford now expects free cash flow of $6.5 billion-$7.5 billion in 2024, up from its initial outlook of $6 billion-$7 billion. The auto giant also said Wednesday it anticipates 2024 capital expenditures of $8 billion-$9 billion, a narrower view compared to its previous forecast of $8 billion-$9.5 billion.

What are the financial results of Ford in 2024? ›

Ford Motor (NYSE:F) First Quarter 2024 Results

Revenue: US$42.8b (up 3.1% from 1Q 2023). Net income: US$1.33b (down 24% from 1Q 2023). Profit margin: 3.1% (down from 4.2% in 1Q 2023). EPS: US$0.34 (down from US$0.44 in 1Q 2023).

Is Ford paying a special dividend in 2024? ›

Ford Motor Co (NYSE:F) recently announced a dividend of $0.15 per share, payable on 2024-03-01, with the ex-dividend date set for 2024-02-15. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates.

Is Ford expected to beat earnings? ›

Ford F reported first-quarter 2024 adjusted earnings per share (EPS) of 49 cents, which beat the Zacks Consensus Estimate of 42 cents but declined from 63 cents recorded in the year-ago quarter.

What will Ford stock price be in 2024? ›

Ford stock price stood at $12.20
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How high is Ford stock predicted to go? ›

Stock Price Forecast

The 13 analysts with 12-month price forecasts for Ford Motor Company stock have an average target of 14.18, with a low estimate of 10 and a high estimate of 20. The average target predicts an increase of 14.08% from the current stock price of 12.43.

Is Ford doing well financially? ›

For full-year 2023, revenue was up 11% to $176 billion. Net income improved year-over-year to $4.3 billion; adjusted EBIT of $10.4 billion was essentially flat year-over-year and at the high end of guidance that Ford provided following ratification of its new contracts with the UAW in the U.S. and Unifor in Canada.

Is Ford in huge debt? ›

The Ford Motor Company reported total debt around 149.2 billion U.S. dollars in 2023. Total debt comprises automotive debt, credit debt, and other debt.

Is Ford a good investment for the future? ›

Is Ford stock a buy? While the automotive industry can make for challenging investments, Ford is a great income story with its strong cash flow, 5% dividend yield, and reoccurring supplemental dividends.

What is the Ford bonus dividend? ›

The regular dividend is 15 cents a share. The special dividend is 18 cents a share.

What are Ford Motor reports fourth quarter earnings that top analysts expectations? ›

Here's how Ford did during the fourth quarter compared with what Wall Street expected, based on average estimates compiled by LSEG, formerly known as Refinitiv:
  • Earnings: 29 cents per share adjusted vs. 14 cents per share adjusted, expected.
  • Automotive revenue: $43.2 billion vs. $40.12 billion expected.
Feb 6, 2024

How much is Ford profit-sharing 2024? ›

It's that time of year again when most Ford Motor Company employees will be eligible to receive their annual profit-sharing check on March 14th, 2024. This year, approximately 58,000 U.S. hourly workers will receive up to $10,416 in profit-sharing.

Is Ford over or undervalued? ›

Over the past 52 weeks, F's P/CF has been as high as 11.02 and as low as 3.10, with a median of 4.61. These figures are just a handful of the metrics value investors tend to look at, but they help show that Ford Motor is likely being undervalued right now.

Why has Ford been losing money? ›

And its revenue plunged 84% to about $100 million, which Ford attributed mostly to price cuts for EVs across the industry. That resulted in the $1.3 billion loss before interest and taxes (EBIT), and the massive per-vehicle loss in the Model e unit.

What is Ford's ex-dividend date? ›

Ford Motor Company's ( F ) ex-dividend date is May 7, 2024 , which means that buyers purchasing shares on or after that date will not be eligible to receive the next dividend payment. Ford Motor Company ( F ) pays dividends on a quarterly basis. The next dividend payment is planned on June 3, 2024 .

What is the forecast for automotive sales in 2024? ›

Calendar-year 2024 light vehicle sales volume projected to hit 16.0 million units, a 3% increase from 2023.

What is the financial forecast for Ford? ›

The automaker now expects to generate adjusted free cash flow of $6.5 billion to $7.5 billion, up from a previous outlook of $6 billion to $7 billion. Its forecast for capital expenditures is now $8 billion to $9 billion, narrower than the $8 billion to $9.5 billion range it originally estimated.

What is Ford's future plans? ›

In parallel, Ford is expanding its hybrid electric vehicle offerings. By the end of the decade, the company expects to offer hybrid powertrains across its entire Ford Blue lineup in North America. In the first quarter of 2024, Ford's electric vehicle sales increased by 86% and hybrid sales rose 42% versus a year ago.

When can i order a 2024 Ford truck? ›

2024 Ford F-150 retail order banks are scheduled to open the afternoon of September 13th – the day after the refreshed model is revealed – at which time the build and price configurator will also go live.


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