Ford (F – Free Report) is ready to launch fourth quarter 2022 outcomes on February 2, after the closing bell. With the earnings launch simply across the nook, it is price wanting on the firm’s US gross sales in the course of the quarter to be reported. We’ll additionally focus on key projections for the corporate’s North American market—which accounts for almost all of automotive gross sales.
(Additionally learn: Ford This autumn Earnings Up: Credit score Unit to Play Spoiler?)
Q3 Ford North American Market Highlights
Within the final reported quarter, wholesale unit volumes within the North American phase elevated 4% from the prior 12 months to 568,000 models, however trailed the consensus metric of 627,000 models. Income within the North America phase rose 10% 12 months over 12 months to $26.3 billion within the reported quarter however fell wanting the consensus metric of $27.6 billion. Consequently, EBIT totaled $1,309 million, a lower of $2,423 million within the corresponding quarter of 2021. The determine additionally missed the consensus mark of $1,955 million.
Issues to Word This Time
Ford reported fourth quarter automobile gross sales of 483,970 models in america, down greater than 4% 12 months over 12 months. Whereas SUV gross sales fell by round 11% in the course of the fourth quarter of 2022, truck gross sales elevated by 0.6% to 270,064 models. It ought to be famous that vans account for the best gross sales combine for Ford by automobile class and in addition present the most important revenue margin for the auto large. December marked the most effective month-to-month gross sales of F-series vans in 2022. Ford bought 75,076 F-Collection final month. This bodes effectively for fourth quarter income from the North American unit. Gross sales of the maverick truck in the course of the quarter underneath assessment jumped to 22,568 models. Ford’s EV gross sales – which embody the Mustang Mach E, E-Transit and F-150 Lightning – rose to twenty,339 models within the fourth quarter of 2022. The volumes have not simply jumped year-on-year, they’re additionally up 11.4% year-over-year sequential.
The Zacks Consensus Estimate for wholesale volumes in North America is pegged at 660,000 models, implying a rise of 599,000 models within the year-ago interval. Consequently, the consensus mark for North American income is $28.8 million, implying a year-over-year improve of 11.6%.
Whereas the corporate bears a lot of the commodity value headwinds ensuing from provide chain aggravations and inflationary pressures, excessive automobile costs supply respite. Ford is passing on elevated manufacturing prices to customers by means of value will increase. Through the fourth quarter of 2022, the corporate raised the value of its common F-Lightning e-bike twice citing “ongoing provide chain constraints, rising materials prices and different market elements.” In October, the value of its e-truck rose 11%, with the entry-level mannequin beginning at $51,974. In December, its value rose once more $4000 to $55,974.
Ford’s projected wholesale shipments and revenues from the North American phase gas optimism. Excessive automobile costs largely offset commodity value inflation, stopping large revenue erosion. The consensus mark for EBIT from the North American phase is pegged at $3,398 million, marking a bounce of $1,822 million.
Ford Earnings and Income Projections for This autumn
The Zacks Consensus Estimate for Ford’s fourth-quarter earnings and automotive income is pegged at 59 cents per share and $39.8 billion, respectively.
Traders ought to notice that our confirmed mannequin doesn’t definitively predict an earnings beat for Ford this season. The mix of a constructive Earnings ESP and a Zacks Rank #1 (Robust Purchase), 2 (Purchase) or 3 (Maintain) will increase the probability of an earnings beat. That isn’t the case right here. Ford ESP at present has a Yield of 0.00% and carries a Zacks Rank #5 (Robust Promote).
You may uncover the most effective shares to purchase or promote earlier than they’re reported with our ESP Earnings Filter.
You may see the entire checklist of right now’s Zacks #1 Rank shares right here.
Shares With the Most popular Mixture
Whereas an earnings beat appears to be like unsure for Ford, listed below are a few gamers from the auto house who, in line with our mannequin, have the precise mixture of parts to put up an earnings beat for the quarter to report:
Lear (LEA – Free Report) will launch fourth quarter 2022 outcomes on February 2, earlier than the opening bell. The corporate has an Earnings ESP of +2.71% and a Zacks Rank #3.
The Zacks Consensus Estimate for Lear’s reported quarter earnings and income is pegged at $2.53 per share and $5.26 billion, respectively. LEA beat earnings estimates within the final 4 quarters, with the common shock being 18%.
Harley-Davidson (HOG – Free Report) is ready to report fourth quarter 2022 outcomes on February 2, earlier than the market opens. The corporate has an Earnings ESP of +300.00% and a Zacks Rank #2.
The Zacks Consensus Estimate for Harley-Davidson’s reported quarterly earnings and income is pegged at 3 cents per share and $880.5 million, respectively. HOG beat earnings estimates in three of the 4 quarters and missed as soon as, with the common shock being 43.3%.
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