Ford nyse F Stock Falls As Investors Anticipate Q4 and Full year Results

Ford (NYSE: F) Stock Falls as Investors Anticipate Q4 and Full-Year Results

Ford Motor Company (NYSE: F) stock fell over 4% on Monday ahead of the scheduled fourth-quarter and full-year results announcement.

Ford (F) will announce its fourth quarter and full-year results post-market on Tuesday, with its evolving EV strategy under the spotlight as the firm transitions to hybrid manufacturing. These results follow the robust performance and profit forecast by General Motors Company (NYSE: GM), signaling a healthy US auto industry.

The analysts expect Ford to report quarterly revenue of $40.35 billion. This figure reflects a 3.5% decrease compared to the last year, mainly due to the lingering effects of the UAW strike in early Q4. In terms of profitability, analysts anticipate Ford to disclose an adjusted EPS of $0.13, with adjusted EBIT totaling $988.2 million.

Bloomberg Consensus on Ford Business Units

Ford (NYSE: F) restructured its operations last year, splitting into separate business units: Ford Blue for the conventional gas-powered division, Ford Model E for the EV segment, and Ford Pro for its commercial and super duty truck operations. According to Bloomberg Consensus:

  • Ford Blue has projected to report revenue of $24.52 billion, with an EBIT of $866.5 million
  • Model e is anticipated to generate $1.91 billion in revenue, with an EBIT deficit of $1.34 billion
  • Ford Pro is expected to yield $13.86 billion in revenue, with an EBIT of $1.43 billion

Regarding guidance, Ford restored its 2023 profit forecast following the approval of its labor agreement with the UAW. Ford projected its full-year 2023 adjusted EBIT to be between $10.0 billion and $10.5 billion, stating that this figure would encompass $1.7 billion in strike-related lost earnings.

Following GM’s release of a 2024 profit forecast in line with its pre-UAW strike prediction for 2023, investor focus now shifts to Ford, awaiting to see if it can meet or surpass GM’s performance. Ford had initially forecasted a profit range of $11 billion to $12 billion for 2023 before the strike.

Ford EV Business in Focus

The spotlight is on Ford’s Model E EV division, which has undergone substantial changes over the past year as its growth rate has decelerated. In the previous quarter, Ford’s CFO John Lawler stated that the company would defer $12 billion in EV investments until such capacity is required. Ford also delayed the construction of the Michigan battery facility, which would employ technology licensed from China’s CATL and scaled back battery production. The plant remains scheduled to start operations in 2026.

Earlier in January, Ford relocated 1,400 workers from F-150 Lightning EV production and downsized a shift to align with apparent declining demand for the acclaimed yet expensive electric pickup truck.

Ford also experienced a decline in its EV sales in January of this year, with EV sales falling by over 10%, primarily driven by the dwindling sales of the Mustang Mach-E, which lost its eligibility for federal EV tax credit on January 1. However, the company did witness an increase in overall auto sales, with hybrid sales surging by over 40%. The Michigan-based automaker stated its plan to bring more hybrids to the market to meet customer demand.

Ford (NYSE: F) Stock Performance

Ford stock tumbled 4.53% to close at $11.59 on Monday. The traders had exchanged hands with 80,736,179 (80.73 million) shares compared to the average daily trading volume of 51.73 million.