Ford Motor Co. (F) the third-largest U.S. automaker by market value, will probably report an increase in revenue on the back of higher sales, especially in the U.S., showing that the company may have moved past supply-chain constraints that hurt its financial performance last year.
Key Takeaways:
- Ford is expected to report higher revenue for the fourth consecutive quarter.
- Global unit sales are forecast to be up 9%, on the strength of a 15% growth in North America.
- Earnings per share are expected to drop slightly to 37 cents a share, after the company’s expenses likely rose by 15%.
Ford is set to report revenues of $39.1 billion, up 13% from the $34.4 billion in revenues it brought in during the 2022 first quarter, according to estimates compiled by Visible Alpha. It would be Ford’s fourth straight quarter of rising revenue. Ford is expecting to report growth of more than 9% worldwide in vehicles it sold, led by 15% growth in North America sales.
The company’s expenses also were higher, up 15% over last year, the first time the company’s first quarter expenses have risen since 2018. Ford is likely to say its net income for the first quarter was $1.5 billion, versus a $3.1 billion net loss it suffered in the first quarter of 2022 on account of its investment in electric carmaker Rivian (RIVN).
Its earnings per share in the first quarter are expected to be off by about 4% when it reports profits of 37 cents a share, a penny lower than last year.
Ford’s 2022 fourth quarter earnings report came in below expectations, with the company attributing the year’s lower revenue in part to supply-chain issues that resulted in higher costs and lower-than-expected volumes. Ford’s 2022 first quarter revenues were lower than the previous year, but the company went on to post higher year-over-year revenue for the next three consecutive quarters.
| Q1 FY2023 (Projection) | Q1 FY2022 | Q1 FY2021 | |
| Total Revenue ($B) | 39.1 | 34.5 | 36.2 |
| Net Income ($B) | 1.51 | (3.11) | 3.26 |
| Earnings Per Share ($) | 0.37 | 0.38 | 0.70 |
Key Metric: Global Units Sales
Ford’s global automobile unit sales are expected to come in 9% higher the prior year-quarter at 1.06 million. It would mark the fourth straight quarter that the company improved its sales, following a four-year period where Ford was able to increase its quarterly sales only once.
More than half of Ford’s quarterly growth came from the North American market, where Ford is expected to have sold more than 592,000 vehicles in the first quarter, up from 514,000 in the first three months of last year. North American revenues likely increased 20% to 26.8 billion, from $22.3 billion in the 2022 first quarter.
Automaker Stocks Slump on Earnings
Ford’s earnings come as investors are closely watching automakers to see how they are navigating economic conditions, as well as the electric vehicle transition. Shares of other automakers have declined after their recent earnings reports.
Tesla’s (TSLA) profit margins came in under 20% after the company cut, and then raised, prices on some models. Since then, shares of Tesla are down more than 12%. General Motors (GM) beat estimates this week, reporting earnings of $2.21 a share, ahead of the $1.63 earnings a share that analysts had projected. Still, GM shares have dropped this week, falling more than 5%. Ford is scheduled to deliver earnings after markets close Tuesday.
Ford shares are up by a little over 2% in 2023, well off the 14.6% gains that the benchmark S&P 500 Consumer Discretionary Index have delivered year to date. The S&P 500’s Automobiles & Components Industry Group Index rose 25% since the start of the year.
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Source: https://www.investopedia.com/ford-q1-fy2023-earnings-preview-7486093?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral&yptr=yahoo