Ford Motor nyse F Stock Edges Higher on Q1 Earnings Beat

Ford Motor (NYSE: F) Stock Edges Higher on Q1 Earnings Beat

Ford Motor Company (NYSE: F) stock saw a modest rise in intraday trading Thursday after the Michigan automaker reported better-than-expected first-quarter earnings.

In a late Wednesday announcement, Ford (F) revealed its first-quarter earnings above estimates despite a revenue shortfall. The automotive giant also provided insights into its 2024 outlook, forecasting ongoing losses in its electric vehicle (EV) segment.

For the first quarter, Ford reported a 3% increase in revenue, reaching $42.8 billion, while earnings per share (EPS) declined by 22% to 49 cents. These figures beat Wall Street expectations, as analysts had estimated EPS to drop to 43 cents, with total sales projected at $42.93 billion. Earlier this month, Ford announced a 6.8% growth in U.S. sales for Q1, with a notable 82% surge in overall EV sales, including hybrids.

Ford (NYSE: F) is the latest auto industry giant to report quarterly results after General Motors (GM) surprised Wall Street with an earnings beat and Tesla (TSLA) stock soared on its outlook Tuesday.

Ford 2024 Guidance

On March 26, Ford reaffirmed its annual core profit guidance of $10 billion to $12 billion. The management reiterated the importance of hybrids as the momentum of EVs slows down. The company has announced a shift in investments from EVs to hybrid vehicles.

Chief Financial Officer of Ford, John Lawler, confirmed on Wednesday that the company’s full-year adjusted earnings before interest and taxes (EBIT) guidance remains unchanged.

Ford has revised its 2024 free cash flow forecast to $6.5 billion-$7.5 billion, a notable increase from the initial outlook of $6 billion-$7 billion. In addition, the auto giant anticipates capital expenditures for 2024 to be between $8 billion and $9 billion, a more precise estimate than the previous $8 billion-$9.5 billion.

The company also maintained its EBIT outlook for different segments, projecting $8 billion to $9 billion for Ford Pro, $7 billion to $7.5 billion for Ford Blue, and an EBIT loss of $5.0 billion to $5.5 billion for Ford Model e.

Despite the overall positive performance, Ford noted challenges within its EV segment in Q1, with Ford Model e revenue declining due to decreased wholesales and persistent pricing pressure affecting EVs in the market. The segment incurred an EBIT loss of $1.3 billion, with costs remaining consistent compared to the previous year.

Ford said it expects improvements in EV costs in the foreseeable future.

Ford Motor (NYSE: F) Stock Reaction

At the time of this report, Ford stock stands at $13.04, indicating a 0.69% increase from the previous trading session. This week, it has surged in value by 8.13%. Trading activity has seen 86,571,691 (86.57 million) shares change hands, significantly higher than the average daily volume of 54.64 million.