Ford exhibits at the New York International Auto Show on March 28, 2024.
Danielle Defries | CNBC
DETROIT — ford motor It announces first-quarter earnings after markets close on Wednesday.
Here's what Wall Street expects, based on average analyst estimates compiled by LSEG:
Earnings per share: 42 cents adjusted, auto revenue: $40.10 billion
These results would represent a 2.6% increase in revenue compared to the prior year and a 32.9% decrease in adjusted earnings per share. Ford's first-quarter 2023 results included revenue of $39.09 billion. Net income of $1.8 billion, or 44 cents per share; Adjusted earnings before interest and taxes of $3.38 billion.
The automaker's 2024 guidance issued in February included adjusted earnings before interest and taxes, or EBIT, of between $10 billion and $12 billion; Adjusted free cash flow from $6 billion to $7 billion; And capital spending from $8 billion to $9.5 billion.
There's less consensus on Wall Street about Ford's performance compared to its crossover rival General Motors, which on Tuesday reported strong first-quarter results and raised its guidance for the full year. Ford is Morgan Stanley's “top pick,” but others on Wall Street are less optimistic about the company.
“While we like Ford relative to suppliers, we also continue to favor GM compared to (Ford),” UBS analyst Joseph Spaak said in an investment note earlier this month.
Ford has faced years of ballooning warranty costs, including $1.9 billion in 2023, that have weighed on its profits. The company said last year that it had an annual disadvantage of $7 billion to $8 billion compared to traditional competitors due to production costs, quality issues and other operational shortcomings.
Investors will be watching improvements in these areas as well as progress on CEO Jim Farley's “Ford+” restructuring plan, first announced in 2021, and any additional updates or delays to all-electric vehicle plans.
— CNBC's Michael Bloom contributed to this report.
This is a developing story. . Please check back for updates
