Ford Motor (F) prepares to report first-quarter earnings after revealing a new financial reporting structure during the quarter. F stock rose near a key technical level, while EV startup Lordstown Motors (RIDE) tanked on a bankruptcy warning.
The Ford earnings report is likely to be its first to break down financial results by three new business entities. In a notable break from the past, Ford will no longer report results by regional markets, the company said in March.
Those new entities include Ford Blue, holding the legacy internal combustion engine (ICE) and hybrid vehicle business; Ford Model e, containing the emerging electric vehicle (EV) and software businesses; and Ford Pro, targeting commercial and government customers.
Investors will watch for Ford’s losses making electric vehicles, or EVs, while the risk of recession grows.
Estimates: Analysts polled by FactSet expect Ford earnings to rebound nearly 10%, year over year, to 42 cents per share. Revenue is seen bouncing 14% to $39.25 billion.
In the year-ago quarter, Ford earnings plunged 46%, hurt by lower delivery volumes due to the chip shortage and other supply disruptions.
Results: Check back Tuesday after the market close.
Outlook: For full-year 2023, analysts forecast adjusted EBIT of $9.59 billion, near the low end of the company’s guidance for $9 billion-$11 billion.
On a per-share basis, the Street expects Ford earnings of $1.62 for the full year, an almost 14% drop from 2022.
Ford has also guided about $6 billion in adjusted free cash flow for 2023.
Ford Stock, EV Stocks
Shares of Ford Motor gained 1.6% to 12.07 on the stock market today, paring gains after topping the 50-day moving average intraday. Ford stock remains well below the 200-day average.
GM stock gained 1.3% Monday after falling last week despite strong earnings and guidance. Morgan Stanley upgraded GM stock to overweight from equal weight Monday, citing strength in its traditional ICE vehicles. TSLA stock shed 1.5% Monday after tumbling more than 20% in April amid weak Q1 earnings.
Lordstown Motors, an EV startup, warned in a filing Monday that it may go bankrupt if a funding deal with Taiwanese contract manufacturer Foxconn doesn’t come through. RIDE stock closed down 23% to 40 cents Monday, trimming losses as much as 50% in the morning session.
Foxconn appeared to back away from the investment deal after Lordstown received a Nasdaq delisting notice, with its shares trading under $1 for 30 consecutive days.
Ford continues to accelerate on electric vehicles development while bleeding money making them.
In Q1, Ford’s total U.S. sales in units rose 10.7% to 456,972 vehicles. During the quarter, its EV sales jumped 41% to 10,866 units, marking strong growth off a low base.
Tailwinds to sales and Ford earnings include supply chain improvements, higher industry volumes, and lower material costs, the company said in February.
Headwinds include risk of recession in the U.S. and Europe, the strong dollar, and lower profit from its car financing arm, Ford added.
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