Ford beats first-quarter earnings expectations, sees full-year earnings “follow to the highest level” of guidance

Ford (F) reported first-quarter results after the bell that beat expectations on Wednesday, with its changing product game plan front and center alongside its focus on gas and hybrid offerings. Ford also boosted some guidance metrics but not its full-year earnings outlook.

During the quarter, Ford reported revenue of $42.8 billion, beating estimates of $40.04 billion and up 3% from a year ago. Ford reported adjusted earnings per share of $0.49, beating expectations of $0.42, with adjusted earnings before interest and taxes (EBIT) coming in at $2.8 billion, compared to estimates of $2.54 billion. Ford's results were better than those it achieved in the fourth quarter when it was dealing with the lingering effects of the United Auto Workers (UAW) strike.

Ford said full-year adjusted EBITDA was trending on the higher end of $10 billion to $12 billion, though it raised its adjusted free cash flow target to $6.5 billion to $7.5 billion, with tightening capital expenditures guidance. To $8 billion to $9 billion. Previously, Ford forecast adjusted EBITDA of $10 billion to $12 billion, adjusted free cash flow of $6 billion to $7 billion, and capital expenditures of $8 billion to $9.5 billion.

After the results were released, Ford shares rose 3% in the after-hours session. These results come after General Motors announced strong first-quarter results and boosted its annual profit expectations.

The slower incline of the all-new Ford F-150 factored into the guidance update, Ford CEO Jim Farley said on the earnings call. Ford also announced a dividend of $0.15 for the quarter.

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Last year, Ford split its business into three units as part of its Ford+ initiative: Ford Blue, for conventional gas-powered vehicles; Ford Model E, for the electric vehicle division; and Ford Pro for commercial and heavy-duty truck work. Here are the details for the first quarter:

  • Ford Blue: Revenues of $21.8 billion, EBIT of $905 million

  • Model E: Revenue of $100 million, loss before interest and taxes of $1.32 billion

  • Ford Pro: $18 billion revenue, EBIT $3.01 billion

“We have to make huge progress on the e-type, it's a big hurdle [on profits]Farley said on the earnings call.[The EV business] “It is the main constraint for the company and the industry.”

During the first quarter, Ford delved deeper into its gas and hybrid vehicles, with electric vehicle spending and production declining. Earlier this month, Ford said it would push back electric vehicle production at its massive BlueOval City EV campus in Tennessee to 2026 from an initial start date of 2025. Ford also revealed it is re-timing upcoming electric vehicle launches at its plant in Oakville, Ont. , as it plans to build the next generation of three-row electric cars, and most likely a full-size SUV. The company aims to launch these vehicles in 2027, pushing back the original schedule of 2025.

Ford also said earlier this quarter that it would do so Add a third shift To boost production of the mid-size Bronco SUV and Ranger to meet customer demand. Meanwhile, Ford is focusing on its hybrid offerings, such as the Maverick pickup truck and the all-new F-150 with a hybrid powertrain.

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DEARBORN, MI - APRIL 11: The new Ford F-150 truck was launched at a ceremonial event at the Ford Dearborn plant on April 11, 2024 in Dearborn, Michigan.  The all-new F-150 and Ford Ranger trucks are now shipping to customers across North America.  (Photo by Bill Poliano/Getty Images)

The new Ford F-150 truck is launched at a ceremonial ceremony held at the Ford Dearborn plant on April 11, 2024 in Dearborn, Michigan. (Photo by Bill Poliano/Getty Images) (Bill Puliano via Getty Images)

This was reflected at Ford Q1 US deliveries Which jumped by 6.8% to 508,083 cars, supported by strong sales of electric products such as hybrid cars. The Ford Maverick hybrid had its best quarter ever, with sales jumping 77% in the first quarter. The Maverick also boosted overall hybrid sales to a 42% jump to 38,421, with Ford claiming this was also the best quarter for hybrids and that momentum will continue.

“Our hybrid capability is in trucks, and we don't see a lot of competition for that business,” Farley said on the call. Although Toyota and Honda are the largest sellers of hybrid vehicles in the United States, Farley noted that their offerings include more non-truck offerings.

Even Ford's electric vehicle offerings — the Mustang Mach-E, the Ford Lightning EV, and its E-Transit commercial vans — have bucked the recent trend of declining demand. Ford's overall electric vehicle portfolio saw a massive 82% jump to 20,223 electric vehicles sold in the first quarter, with the Mustang Mach-E jumping 77.3% to 9,589 units sold, and the Lightning truck seeing sales jump 80.4% to 7,743 units. While sales numbers here are strong, Ford has relied on deep discounts, cheap financing rates, and lease deals to move inventory.

“We have seen [EV] “Prices are coming down pretty dramatically,” Ford CFO John Lawler said on the call, as Ford struggles to recoup losses in the Model e unit. Ford EV prices fell 17% in the first quarter, Lawler said.

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However, Ford's note was its F-150 sales leader. Although the F-Series (which includes the heavy-duty F-150, F-250 and F-350 offerings) retained the crown of best-selling truck in America, sales fell 10.2% in the quarter to 152,943 units. Ford has seen Slow escalation The all-new F-150, which went on sale in March.

Correction: A previous version of this article misstated Ford's adjusted earnings per share number. We apologize for this error.

Pras Subramanian is a reporter for Yahoo Finance. You can follow it Twitter and on Instagram.

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