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Ford's Earnings Surge: A Robust Beat and Optimistic Outlook Spark 6%After Hours Reaction Rally

AInvestWednesday, Feb 7, 2024 1:35 am ET
1min read

Ford Motor Company has unveiled its Q4 earnings for the fiscal year 2023, outperforming analyst predictions and marking a significant uptick from the prior year. The automotive giant posted earnings of $0.29 per share, outshining the consensus estimate of $0.12 per share and showcasing substantial growth from last year's $0.05 per share. Automotive revenues witnessed a 3.5% increase year-over-year to $43.21 billion, slightly ahead of expectations.

Highlighting Ford Pro's segment, revenues ascended by 11% to $15.4 billion, fueled by the introduction of the all-new Super Duty trucks in North America and Transit Custom vans in Europe. Additionally, software subscriptions saw a remarkable nearly 50% increase year-over-year, with mobile repair orders more than doubling.

The Ford Blue segment, focusing on gas- and hybrid-vehicles, reported steady revenues at $26.2 billion for Q4. With 60% of Ford Blue's global lineup set for a refresh by the end of 2024, anticipation builds around the upcoming new version of the F-150, part of Ford's legendary F-Series.

Ford Model e's segment also reported notable growth, with double-digit increases in wholesales and revenue. Despite a full-year EBIT loss of $4.7 billion, attributed to competitive pricing and significant investments in next-gen EVs, the F-150 Lightning pickup and Mustang Mach-E SUV stood out, leading their respective categories in the U.S. for 2023.

Looking ahead, Ford sets its sights on an adjusted EBIT of $10-12 billion for fiscal year 2024, alongside an adjusted free cash flow of $6-7 billion. With capital expenditures projected between $8.0-9.5 billion, the company also delighted investors with a quarterly dividend of $0.15 per share and an additional supplemental dividend of $0.18 per share for the first quarter of 2024.

Ford's Q4 earnings not only underscore the company's robust financial performance but also highlight its commitment to shaping the future of electric mobility. With forward-looking guidance that exudes confidence in continued growth, Ford positions itself as a formidable player in the evolving automotive landscape.


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