Ford (F) earnings This autumn 2022
Ford CEO Jim Farley removes his mask at the Ford Built for America event at Ford’s Dearborn Truck Plant on September 17, 2020 in Dearborn, Michigan.
Nick Antaya | Getty Images
DETROIT- Ford engine will report its fourth-quarter results after the market close on Thursday. Here’s what Wall Street expects, according to Refinitiv consensus estimates:
- Adjusted earnings per share: 62 cents
- Automotive sales: $40.37 billion
In October, Ford confirmed its previous guidance for the full year of adjusted earnings before interest and taxes of $11.5 billion to $12.5 billion. It brought in $7.9 billion for the first three quarters of the year, led by its North American operations.
If Ford meets or exceeds Wall Street’s sales and earnings expectations, earnings per share would more than double the 26 cents reported for the same period last year. Revenue would increase 14.5% from the fourth quarter of 2021.
While investors will monitor fourth-quarter results for signs of softening consumer demand or earnings dilution, Ford’s guidance for 2023 is likely to have more focus.
Wall Street expects Ford’s full-year 2023 adjusted earnings per share to decline nearly 16% from 2022, according to estimates from Refinitiv. That’s despite full-year revenue forecast to rise 3.4% year over year to more than $151 billion, indicating lower operating profit compared to recent years.
Automakers have posted record or near-record results during the coronavirus pandemic amid a tight supply of new vehicles and resilient consumer demand. But this scenario is slowly normalizing, leaving new car prices and profits in flux.
On Monday, Ford lowered the price of its electric Mustang Mach-E, an early sign of a burgeoning EV price war Tesla.
Earlier Thursday, Ford reported January new vehicle sales showing a slight improvement from the same period last year.
Ford is under pressure to deliver a strong fourth quarter and relatively solid guidance. Crosstown rival General Motors comfortably beat Wall Street’s expectations on Tuesday. The automaker also forecast stronger-than-expected 2023 earnings, including adjusted earnings before interest and taxes of $10.5 billion to $12.5 billion and adjusted earnings per share of between $6 and $7.
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