Ford (F – Free report) is scheduled to open fourth-quarter 2022 results on Feb 2, after the closing bell. The Zacks Consensus Estimate for earnings for the quarter was pegged at 59 cents per share. The bottom line rate means year-over-year growth of 127%. The Zacks Consensus Estimate for Ford’s fourth-quarter earnings per share was unchanged over the past 60 days.
The US auto biggie missed earnings estimates last quarter it reported amid lower-than-expected profits in its North American division and lower revenue and wider pre-tax loss per unit. Republic of China. In a four-quarter sequence, Ford beat earnings estimates one time and missed the other three times, an average surprise of 3.21%. This is shown in the graph below:
Ford’s third-quarter adjusted earnings came in at 30 cents a share, missing the Zacks Consensus Estimate by 31 cents. The bottom line fell 41.2% from last year’s quarter of 51 cents. The company’s third quarter revenue was $39.4 billion, up 10% year over year.
Ford reported adjusted cash flow of $3,601 million in the quarter. It had cash and cash equivalents of $21.5 billion as of September 30, 2022, compared to $20.5 billion as of December 31, 2021. Long-term auto debt increased to $19,073 million from $17,200 million at the end of the 2021.
Things to Watch Before the Release Q4
Ford’s fourth-quarter earnings appear to have helped fuel the increase in wholesale unit sales. The Zacks Consensus Estimate for total global retail shipments was recorded at 1,209,000 units, showing an increase from 1,105,000 units last year. The consensus for fourth quarter revenue from auto sales was $39,402 million, which is an increase from $35,300 million recorded in the same quarter of 2021. recorded in the fourth quarter it’s 2021.
The consensus estimate for revenue from Ford Credit is set at $2,235 million, which is a decrease from $2,373 million. The consensus for adjusted EBIT from the group is $338 million, suggesting a drop from $1,055 million in the fourth quarter of 2021. Profits from Ford Credit will likely lower because auction prices are expected to be driven by non-recurring inventory, lower rental car returns and higher revenue losses.
The consensus estimate for Ford Mobility revenue came in at $42.9 million, down from $48 million. The combined net loss before interest and taxes from the segment was $222 million.
Despite strong year-over-year results from the company’s Automotive division, poor performance from Ford’s Credit and Mobility units appears to have playing bad games. In addition, large expenditures on modernization, including communications, IT and new product launches, are expected to limit income to some extent.
Whisper of Money
Our forecast does not predict earnings for Ford for the quarter to be reported, as we do not have the right mix. two important things. The combination is a good thing Income ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the likelihood of an earnings decline. This is not the case here.
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Income ESP: Ford Earnings ESP is 0.00%. This is because the Best Estimate is in line with the Zacks Consensus Estimate.
Zacks Index: It currently carries a Zacks Rank of 4 (Buy).
You can see the full list of Zacks #1 Rank today.
Share with Good Association
Although it seems that the victory of Ford is not certain, but here are some players from the car, which, according to our example, has the right combination of elements to throw money earnings for the quarter to be reported:
The Zacks Consensus Estimate for Lear will report quarterly revenue and earnings pegged at $2.53 per share and $5.26 billion. LEA outperformed earnings in the last four quarters, with an average surprise of 18%.
The Zacks Consensus Estimate for Harley-Davidson’s earnings and revenue should be reported at 3 cents per share and $880.5 million. HOG exceeded earnings in three out of four quarters and missed once, with an average surprise of 43.3%.
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