Detroit, Michigan – Ford’s stock surged in after-hours trading as the automaker reported strong fourth-quarter sales and projected a full-year profit outlook above estimates. Despite this positive news, Ford still foresees more losses for its EV unit. The results come on the heels of rival GM’s strong earnings report and profit guidance, signaling overall strength in the US auto sector.
Ford’s top-line revenue of $46 billion surpassed Bloomberg’s estimate of $40.35 billion, showing a $2 billion increase from a year ago. The company also reported adjusted earnings per share of $0.29, beating the estimated $0.13, with adjusted EBIT of $1.1 billion, exceeding the expected $988.2 million. As a result, Ford’s shares rose over 6% in premarket trading on Wednesday.
The automaker’s 2023 adjusted EBIT of $10.3 billion fell within its projected range of $10 billion to $10.5 billion, reflecting the impact of the UAW strike-related lost profits. Ford also reinstated its 2023 profit outlook following the ratification of its labor deal with the UAW. Looking ahead to 2024, Ford’s projected adjusted EBIT of $10 billion to $12 billion is below its pre-UAW strike 2023 profit outlook but higher than estimates of $9.24 billion.
Ford’s Model e unit recorded an EBIT loss of $4.7 billion for the year, reflecting intense pricing pressure and strategic investments in next-generation EVs. The company also projected wider losses for the Model e unit in 2024, with an EBIT loss of $5 billion to $5.5 billion.
Despite these challenges, Ford’s overall sales in 2023 saw a 7.1% increase, marking the automaker’s best year since 2020. The company reported strong sales in its trucks business, with 1,081,777 trucks and vans sold, representing a 13% increase. Additionally, sales of hybrids and EVs were up 25.3% and 17.9%, respectively.
As Ford navigates the evolving EV market and adjusts to changing demand, CEO Jim Farley emphasized the company’s commitment to developing next-gen profitable EVs. Overall, Ford’s latest financial report offers insights into the company’s performance and strategies amidst a shifting automotive landscape.