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Ford Q4 Earnings and 2024 Outlook Ford (F) Exceeds Q4 Earnings Expectations, Revenues Show Year-Over-Year Growth

Ford (F) is firing on all cylinders as the automaker’s adjusted earnings for the fourth quarter of 2023 surged to 29 cents per share, surpassing the Zacks Consensus Estimate of 12 cents. Notably, there was a decline from 51 cents in the corresponding quarter last year. Adding to the fervor, the company’s consolidated fourth-quarter revenues reached $46 billion, marking a 4.5% increase year over year.

Segmental Splendor

The U.S. legacy automaker reports its automotive results under three business segments — Ford Model e, Ford Blue and Ford Pro. While Ford Blue focuses on the firm’s legacy gas-powered business, Ford Model e concentrates on EVs, advanced technologies, and related aspects to bolster electrification plans. Ford Pro deals with commercial vehicles and services.

In the fourth quarter, the total wholesale volume in the Ford Blue segment remained steady at 758,000 units, defying expectations. Additionally, revenues from the segment held steady at $26.2 billion, surpassing estimates on better-than-anticipated volume. Moreover, Ford’s total automotive revenues stood at around $43.3 billion, beating estimates on the back of robust results from Ford Blue, Ford Model e, and Ford Pro units.

Financial Fortitude

Ford’s adjusted free cash flow for the quarter tallied at $1.96 billion, with the company having cash and cash equivalents of $24.86 billion as of December 31, 2023. Meanwhile, its long-term debt, excluding Ford Credit, amounted to $19.5 billion at the end of the fourth quarter of 2023.

2024 Vision

For full-year 2024, Ford anticipates adjusted EBIT in the range of $10-$12 billion, while adjusted free cash flow is estimated between $6-$7 billion. The automaker’s capital spending is forecasted to range between $8 billion and $9.5 billion.

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Zacks Rank & Key Picks

F currently holds a Zacks Rank #3 (Hold). Some noteworthy players in the auto space include Honda Motor Co., Ltd., Oshkosh Corporation, and Modine Manufacturing Company, each flaunting a Zacks Rank #1 (Strong Buy) at present. The Zacks Consensus Estimate for HMC’s 2024 sales and earnings suggests substantial year-over-year growth. Similarly, the EPS estimates for 2024 and 2025 for OSK and MOD have witnessed upward revisions.

(We are reissuing this article to correct a mistake. The original article, issued on February 7, 2024, should no longer be relied upon.)

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