By
Bhushan Akolkar
October 27th, 2023
Ford lifted its guidance range for full-year 2023 consolidated adjusted EBIT to between $11 billion and $12 billion.
Ford Motor Co (NYSE: F) shares dropped approximately 1.17 percent during the after-hours session to trade around $13.57. The Ford shares dipped despite the company reporting better than expected Q2 2023 earnings and also raising the expectations for the full-year 2023 profitability. Additionally. The overall performance in F shares slightly dropped in the after-hours despite the company’s second-quarter earnings beating analysts’ expectations. Notably, Ford’s automotive revenue for the second quarter came in at $42.43 billion, compared to $40.38 billion estimated by analysts surveyed by Refinitiv.
The company’s 12 percent increase in revenue YoY was largely contributed by the fact that its brands were America’s top-selling during the quarter. As a result, the company announced that its adjusted earnings per share for the quarter was 72 cents compared to 55 cents expected by analysts surveyed by Refinitiv.
Ford Q2 2023 Financial Results
In Q2 2023, Ford announced that its dedication to the electric vehicle industry is unwavering amid global increased demand. Moreover, the United States government has in the recent past emphasized the shift to electric vehicles in a bid to reduce greenhouse gas emissions. However, the company warned that near-term EV adoption will be slower than expected. Nonetheless, Ford Model E revenue increased by 39 percent during the second quarter with a forecast of delivering up to 600k units by 2024.
“The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford,” said Ford CEO Jim Farley. “EV customers are brand loyal and we’re winning lots of them with our high-volume, first-generation products; we’re making smart investments in capabilities and capacity around the world; and, while others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away.”
Notably, the company has significantly increased its battery production and also engaged in production at the Rouge Electric Vehicle Center in Michigan. As a result, Ford announced last week that it would lower suggested retail prices for the all-electric F-150 Lightning pickup truck. The company’s market outlook is well bolstered by its strong balance sheet, which had nearly $30 billion of cash and more than $47 billion of liquidity at the end of the second quarter.
As a result, Ford lifted its guidance range for full-year 2023 consolidated adjusted EBIT to between $11 billion and $12 billion. Additionally, Ford raised its expectations for full-year adjusted free cash flow to between $6.5 billion and $7 billion, with capital expenditures of between $8 billion and $9 billion.