Ford stock falls despite Q3 sales beat, as it guides to lower end of 2024 profit forecast
Ford (F) reported third quarter earnings after the bell on Monday, beating on revenue but guiding to the lower end of its full-year forecast.
The automaker’s results follow rival GM’s blowout Q3 report and third profit guidance boost for the year.
Ford reported revenue of $46.2 billion compared with the $41.9 billion estimated per Bloomberg data. That was lower than the $47.8 billion reported last quarter, but 5% higher than the $43.8 billion a year ago.
It posted adjusted EPS of $0.49, matching estimates, on adjusted EBIT (earnings before interest and taxes) of $2.6 billion. Net income came in at $900 million, affected by a $1 billion one-time EV-related charge that had been previously disclosed.
Ford brought down its full-year profit forecast, with the automaker now seeing 2024 adjusted EBIT “to be about $10 billion,” the lower end of its previous $10 billion to $12 billion.
Shares were down over 6% in premarket trading on Tuesday.
In a media call with reporters, Ford Vice Chair and CFO John Lawler cited “supplier disruptions” as the reason for lower sales in Ford Pro and Ford Blue. Lawler elaborated that some of the disruptions were due to the hurricane impact in the southern US.
“We have made strategic decisions and taken the tough actions to create advantages for Ford versus the competition in key areas like Ford Pro, international operations, software and next-generation electric vehicles” Ford President and CEO Jim Farley said in a statement. “Importantly, over time, we have significant financial upside as we bend the curve on cost and quality, a key focus of our team.”
As part of its Ford+ plan, Ford divided its business into three units: Ford Blue for the traditional gas-powered business, Ford Model e for the EV division, and Ford Pro for its commercial and super duty truck business. Analysts are expecting the following for Q3:
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Ford Blue: $26.2 billion in revenue, $1.627 billion in EBIT
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Model e: $1.2 billion in revenue, -$1.224 billion in EBIT
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Ford Pro: $15.7 billion in revenue, $1.814 billion in EBIT
Ford said it expected full-year Model e losses to be about $5 billion, slightly lower than the $5.5 billion previously projected.
Ford’s Q3 US deliveries, reported earlier this month, jumped 4.3% year over year to 504,039 vehicles, though they are still down compared to the 536,050 delivered last quarter. Ford said EV sales jumped 12% year over year, powered by the Ford Lightning pickup and Ford E-transit van. Ford hybrid vehicles, led by the Maverick pickup, surged 38% year over year.
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