Ford CEO Jim Farley at the company’s Dearborn, Michigan, plant where it’s building the electric F-150 Lightning on April 26, 2022.
CNBC | Michael Wayland
DETROIT — Ford Motor beat Wall Street’s top- and bottom-line expectations for the fourth quarter, while forecasting better-than-expected results for 2024.
The company’s forecast for 2024 includes adjusted earnings before interest and taxes (EBIT) of between $10 billion and $12 billion, adjusted free-cash flow of $6 billion to $7 billion, and capital spending of $8 billion to $9.5 billion.
Analysts forecast Ford’s guidance to be roughly between $9 billion and $11 billion, according to investor notes from several analysts.
Here’s how Ford did during the fourth quarter compared with what Wall Street expected based on average estimates compiled by LSEG, formerly known as Refinitiv:
- Earnings: 29 cents per share adjusted vs 14 cents per share adjusted expected by LSEG, formerly known as Refinitiv.
- Automotive revenue: $43.2 billion vs $40.12 billion expected by LSEG.
Ford’s 2022 fourth-quarter results included $41.8 billion in automotive revenue, net income of $1.3 billion and adjusted earnings before interest and taxes of $2.6 billion.
Aside from its earnings, Wall Street will be watching Ford’s 2024 guidance. Analysts expect it to be flat to slightly lower compared to 2023. However, Ford’s crosstown rival General Motors last week beat expectations for earnings guidance.
Analysts forecast Ford’s guidance to be roughly between $9 billion and $11 billion, according to investor notes from several analysts.
Ford in November forecast 2023 adjusted EBIT of $10 billion to $10.5 billion, about $1 billion lower than previous guidance in light of contract negotiations with the United Auto Workers union.
Wall Street also will be watching for any additional actions by Ford to offset increasing labor costs due to the new UAW contract, which the company said is expected to cost $8.8 billion over the life of the deal, ending in April 2028.
Ford is expected to face headwinds this year, including lower vehicle prices, warranty costs and continued losses for all-electric vehicles. Bright spots are expected to be its Ford Pro fleet unit and traditional Ford Blue internal combustion engine business.
This is breaking news. Please check back for updates.
— CNBC’s Michael Bloom contributed to this report.