Ford Stock Drops as Automaker Projects Lower Earnings, Offsetting Upbeat Q4 Results

Ford (F) shares are tumbling Thursday morning after the automaker posted a downbeat outlook weighed on by losses in its electric vehicle (EV) business that offset higher-than-estimated quarterly results. The stock is down 6% in pre-market trading, following the release of the company's fourth-quarter earnings report.



Ford reported Q4 earnings of $1.80 per share, beating analysts' estimates of $1.65. Revenue came in at $44.6 billion, also topping expectations of $43.5 billion. However, the company's guidance for the upcoming year was disappointing, with projected earnings of $1.71 per share, below analysts' estimates of $1.80.

Ford's EV business, which includes the F-150 Lightning and Mustang Mach-E, is expected to post losses of up to $5.5 billion in 2025, similar to last year's losses. The company attributed the losses to higher research and development costs, as well as the impact of inflation on input costs.



Ford CEO Jim Farley acknowledged the challenges facing the EV business, stating, "We're not satisfied with the pace of our EV transition, and we're taking aggressive action to improve our performance." The company plans to introduce a new affordable electric vehicle platform in 2027, which will allow it to introduce multiple vehicle styles for both retail and commercial customers at a faster pace, with more personal digital customization.

Despite the setback, Ford remains committed to its electrification strategy and plans to invest $22 billion in electrification through 2025. The company is also expanding its EV manufacturing footprint, with new plants in North America and Europe.

Investors should monitor Ford's progress in reducing EV losses and improving its earnings outlook. The company's ability to execute on its electrification strategy and maintain profitability will be crucial for its long-term success.