Ford Motor is set to reveal its first-quarter earnings after the markets close on Wednesday. Analysts on Wall Street have compiled their estimates, with expectations as follows: Earnings per share are projected to be at 42 cents adjusted, while Automotive revenue is anticipated to reach $40.10 billion. This would represent a 2.6% increase in revenue compared to the previous year, but a significant 32.9% decline in adjusted earnings per share.
For the first quarter of 2023, Ford reported $39.09 billion in revenue, with net income of $1.8 billion, or 44 cents per share. The adjusted earnings before interest and taxes (EBIT) stood at $3.38 billion. Looking ahead, the automaker provided its 2024 guidance in February, including adjusted EBIT projections of $10 billion to $12 billion, adjusted free cash flow estimates of $6 billion to $7 billion, and capital spending expectations of $8 billion to $9.5 billion.
While Ford has been identified as a top pick by Morgan Stanley, there are varying opinions on the company among analysts. UBS analyst Joseph Spak expressed a preference for General Motors over Ford, citing relative performance. Ford has been grappling with high warranty costs and operational inefficiencies, leading to a $7 billion to $8 billion annual disadvantage compared to its competitors.
Investors will be closely monitoring Ford’s progress in addressing these challenges. Improvements in warranty costs, production efficiency, and quality issues are crucial for the company’s financial performance. Additionally, CEO Jim Farley’s “Ford+” restructuring plan, initiated in 2021, will be under scrutiny for signs of progress. Any updates or delays to Ford’s all-electric vehicle plans will also be of interest to stakeholders.
Overall, Ford’s first-quarter earnings announcement will provide insight into the company’s financial health and strategic direction. With competition intensifying in the automotive industry, Ford will need to demonstrate its ability to navigate challenges and capitalize on opportunities for growth. Analysts and investors will be eagerly awaiting the unveiling of Ford Motor’s financial results and strategic updates.
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