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Ford (F) Earnings & Revenues Drive Past Estimates in Q1

Zacks Equity Research

Ford Motor Company F reported first-quarter 2019 adjusted earnings per share of 44 cents, beating the Zacks Consensus Estimate of 26 cents. In the prior-year quarter, adjusted earnings were 43 cents per share. Results were impacted by the exit of heavy truck operation in South America and restructuring of the company’s joint venture in Russia, offset by robust performance in North America and at Ford Credit.

Adjusted earnings before income and taxes (EBIT) in the first quarter were$2.4 billion, reflecting an increase of $0.3 billion from the year-ago quarter.

During the reported quarter, Ford logged automotive revenues of $37.2 billion, surpassing the Consensus Estimate of $36.4 billion. In the prior-year quarter, the figure was $39 billion.

Ford Motor Company Price, Consensus and EPS Surprise

 

Ford Motor Company Price, Consensus and EPS Surprise | Ford Motor Company Quote

Ford Automotive

During the reported quarter, wholesale volume at the Ford Automotive segment declined 237,000 units to 1.43 million. EBIT was $2 billion, marking a decline of $0.3 billion from the year-ago quarter.

In North America, revenues increased $0.6 billion year over year to $25.4 billion during the reported quarter. Wholesale volume declined 43,000 units to 753,000. Further, EBIT was $2.2 billion, marking rise of $0.3 billion from the year-ago quarter. Thisrise was majorly due to stronger net pricing and product mix.

In South America, revenues declined$0.4 billion year over year to $0.9 billion. Pre-tax loss amounted to $158 million, owing to inflationary and adverse exchange effects. Moreover, wholesale volume declined by 18,000 units to 68,000.

In Europe, revenues decreased $1.3 billion to $7.6 billion. Wholesale volumedecreased58,000 units to around 391,000. The region’s EBIT was$57 million, marking a decline of $62 million in the first quarter of 2018.

In the Middle East & Africa segment, revenues were $0.6 billion. Further, wholesale volume declined 3,000 units to 22,000. The region recorded an EBIT of $14 million.

In the Asia Pacific region, excluding China, revenues decreased $0.3 billion to $1.8 billion. Wholesale volume declined 8,000 units to 76,000. Further, the region recorded an EBIT of$19 million.

In China, revenues declined $0.4 billion year over year to $0.9 billion. Further, the company incurred pre-tax loss of $128 million in that country. This decline was due to lower volume, partly offset by the company’s cost-reduction actions.

Other Segments

Ford has two other segments namely, Ford Credit and Mobility. During the first quarter, Ford Credit generated EBT of $801 million. The Mobility segment had pre-tax loss of $288 million due to increased investment in the development of mobility services and the autonomous vehicle business.

Financial Position

Ford had cash and cash equivalents of $20.8 billion as of Mar 31, 2019, compared with $16.7 billion as of Dec 31, 2018.

Zacks Rank and Stocks to Consider

Ford currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are PACCAR, Inc. PCAR, SPX Corporation SPXC and AB Volvo VLVLY. PACCAR and SPX Corp currently carry a Zacks Rank #2 (Buy) while Volvo sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PACCAR has an expected long-term growth rate of 8.4%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 0.16% upward over the past 30 days.

SPX Corp has an expected current-year growth rate of 18.2%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 0.4% upward over the past 30 days.

Volvo has an expected long-term growth rate of 5%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 4.3% upward over the past 30 days.

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