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Ford Reports Mixed Earnings Results for Q4 2022, F Shares Drop

UTC by Steve Muchoki · 2 min read
Ford Reports Mixed Earnings Results for Q4 2022, F Shares Drop
Photo: Depositphotos

Ford reported total revenues of $44 billion, thus a net income of about $1.3 billion for Q4 2022.

Ford Motor Co (NYSE: F) released its Q4 and full-year 2022 financial results on Thursday, February 02. Notably, the company fell short of analysts’ expectations for the fourth quarter. Additionally, Ford missed its full-year guidance by $1.1 billion citing execution issues in its daily operations. As a result, F shares closed Thursday trading at $14.42, up approximately 3.84 percent from the day’s opening price. However, the gains had been wiped out during the after-hours trading session with a drop of about 6.42 percent.

Ford Financial Results for Q4 2022

According to the company’s Q4 and full-year financial report, Ford reported total revenues of $44 billion, thus a net income of about $1.3 billion. Reportedly, the company recorded adjusted earnings before interest and taxes of $2.6 billion. Notably, the company’s automotive revenue for the fourth quarter came in at $41.8 billion versus the $40.37 billion estimated by analysts.

The company noted that its Adjusted earnings per share for the fourth quarter came in at 51 cents versus 62 cents estimated by analysts. For the 2022 full-year results, Ford posted revenues of about $158.1 billion.

Reportedly, the company shipped more than 650,000 F-Series trucks in 2022, thus making it America’s best-selling truck for 46 straight years and the top vehicle of any type for 41 years. Notably, the company posted a full-year net loss of about $600 million in China, where Ford has made significant progress in electric vehicle production.

Forward, the company expects to earn $9 billion to $11 billion in adjusted EBIT. As a result, Ford anticipates generating about $6 billion in adjusted free cash flow in 2023. However, the company has indicated the results may be affected by the possibility of a global recession.

“I’m excited about 2023, which is pivotal for us,” said President and CEO Jim Farley. “We’ve got clarity and ambition with the Ford+ plan, a strong team carrying it out, and a lineup of great products and customer experiences that are getting even better.

“We should have done much better last year,” added Farley. “We left about $2 billion in profits on the table that were within our control, and we’re going to correct that with improved execution and performance.”

Side Notes

The $55.44 billion valued company has seen its stock market rise by approximately 23.13 percent YTD. This is after dropping about 28 percent in value last year. According to a survey conducted by MarketWatch on 22 analysts, Ford shares received an average target price of $14.17 and an average recommendation of Hold.

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