As Ford Motor prepares to announce its first-quarter earnings after the markets close on Wednesday, there is anticipation surrounding the financial results. Analysts are projecting earnings per share of 42 cents adjusted and automotive revenue of $40.10 billion. These estimates represent a 2.6% increase in revenue from the previous year but a significant 32.9% decline in adjusted earnings per share.
In the first quarter of 2023, Ford reported revenue of $39.09 billion, net income of $1.8 billion (or 44 cents per share), and adjusted earnings before interest and taxes of $3.38 billion. Looking ahead to 2024, the company’s guidance includes adjusted earnings before interest and taxes in the range of $10 billion to $12 billion, adjusted free cash flow of $6 billion to $7 billion, and capital spending of $8 billion to $9.5 billion.
Despite being considered Morgan Stanley’s “top pick,” Ford’s performance is viewed differently across Wall Street. While some analysts are optimistic about the company, others are more cautious. For instance, UBS analyst Joseph Spak expressed a preference for General Motors over Ford, citing various factors influencing his decision.
Ford has faced challenges such as inflated warranty costs, totaling $1.9 billion in 2023. Additionally, the company has acknowledged operational inefficiencies that have put them at a disadvantage compared to traditional rivals in terms of production costs and quality issues. In response to these issues, CEO Jim Farley unveiled the “Ford+” restructuring plan in 2021, aiming to address these inefficiencies and drive future growth.
Investors will be closely monitoring Ford’s progress in improving its operational performance and implementing its restructuring plan. Additionally, updates on the company’s all-electric vehicle plans will be of interest, as Ford aims to navigate the evolving landscape of the automotive industry. With varying opinions on Wall Street and a track record of challenges, Ford’s first-quarter earnings announcement is highly anticipated for insights into the company’s financial health and strategic direction.