Ford Motor (F) Up 3.8% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Ford Motor Company (F). Shares have added about 3.8% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Ford Motor due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Ford Q4 Earnings Top Estimates Ford reported fourth-quarter 2024 adjusted earnings per share of 39 cents, which surpassed the Zacks Consensus Estimate of 34 cents and rose from 29 cents recorded in the year-ago quarter. The company’s consolidated fourth-quarter revenues came in at $48.2 billion, up 5% year over year. F’s total automotive revenues came in at around $44.9 billion, topping the Zacks Consensus Estimate of $43.5 billion and higher than $43.3 billion generated in the year-ago quarter.Segmental PerformanceIn the fourth quarter, total wholesale volume in the Ford Blue segment increased 2% year over year to 774,000 units and exceeded our expectation of 731,000 units. Revenues from the segment increased 4% year over year to $27.3 billion and topped our estimate of $25.7 billion. Earnings before interest and taxes came in at $1.58 billion, above our projection of $1.26 billion. EBIT margin of 5.8% was up 270 basis points from the corresponding quarter of 2023.Total wholesale volume in the Ford Model e segment rose 10% year over year to 37,000 units, missing our estimate of 38,000. Revenues from the segment declined 11% year over year to $1.4 billion but topped our estimate of $1.22 billion on higher-than-expected average selling price of vehicles. The segment incurred loss before interest and taxes of $1.39 billion, compared with our model estimate of $1.32 billion.Total wholesale volume in the Ford Pro segment increased 5% year over year to 378,000 and outpaced our expectation of 362,000 units. Revenues from the segment grew 6% year over year to $16.2 billion but missed our expectations of $16.45 billion. Earnings before interest and taxes came in at $1.63 billion with an EBIT margin of 10%. EBIT topped our projection of $1.61 billion.Fourth-quarter revenues from the Ford Credit unit came in at $3.27 billion, up 19% year over year but below our estimate of $3.33 billion. Pretax earnings were roughly $470 million, up 68% year over year.Financial PositionFord reported an adjusted free cash flow of $700 million for the quarter. It had cash and cash equivalents of $22.9 billion as of Dec. 31, 2024. Long-term debt, excluding Ford Credit, totaled $18.9 billion at the end of 2024.F declared its first-quarter 2025 supplemental payout of 15 cents/share, in addition to the regular dividend of 15 cents per share, payable on March 3 to shareholders of record at the close of business on Feb. 18, 2025.2025 GuidanceFor full-year 2025, Ford expects EBIT in the range of $7-$8.5 billion. Adjusted free cash flow is envisioned in the range of $3.5-$4.5 billion. Capital spending is expected in the range of $8-$8.5 billion. Ford forecasts 2025 EBIT from the Pro and Blue segments to be in the band of $7.5-$8 billion and $3.5-$4 billion, respectively. Pretax profit from Ford Credit is anticipated at around $2 billion. The Ford Model e unit is anticipated to incur a pre-tax loss in the range of $5-$5.5 billion.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.The consensus estimate has shifted -83% due to these changes.VGM ScoresAt this time, Ford Motor has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Ford Motor has a Zacks Rank #3 (Hold). 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Click to get this free report Ford Motor Company (F): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks