Ford shares dip after Q4 earnings report, revenue beat

Yahoo Finance's Pras Subramanian breaks down Ford's quarterly earnings and why the stock is falling.

Video Transcript

EMILY MCCORMICK: And the earnings roll on with Ford numbers now crossing the tape. Pras Subramanian is here with more. Pras, us the details on this report.

PRAS SUBRAMANIAN: Yeah, Emily, shares bouncing around here, now lower in the after hours after initially being higher, with a top line beat for Ford, reporting $37.7 billion in fourth quarter revenue. That beat a Bloomberg estimate of $34.79 billion. However, adjusted EPS missed estimates, came in at $0.26 versus $0.45, which was the Bloomberg estimate.

Full year net income was 17.9 billion. And the company's adjusted EBIT was 10 billion. That was between their guidance range that they gave last quarter. And Ford ended the quarter with $36 billion in cash, $32 billion in equivalents.

They're also noting this includes the Rivian stake, which has actually gone down in value from $10.6 billion to $6.6 billion as of right now. Guidance for the rest of the year, very important here. They upped their guidance for full-year adjusted EBIT for 2022 from 11.5 billion to 12.5 billion. That's from the 10 and 1/2 to 11 and 1/2 billion they had last quarter.

And they also expect to see, quote, "continued variability in supplies of key components due to COVID shutdowns." And they're expecting increased commodity costs.

Global production capacity for E, for battery electric e-vehicles, they still see at 600,000 units for 2023. On the call, we wanted to hear more about those chip shortages and component shortages in the near term. We note that GM had mentioned this last week in their earnings, saying that the chip shortage was easing, right?

Also, we want to hear more about EV plans, investment, transformation. Maybe we're going to hear about this potential new investment in EVs that Bloomberg was reporting from CFO John Lawler and CEO Jim Farley in the earnings call later today.

BRAD SMITH: All right, shares of F, Ford, moving lower here in after hours by about 6.8%. Yahoo Finance's own Pras Subramanian, thanks for breaking down the results here for us. Pras, appreciate it. And everyone, coming up on the other side of this short, break we've got much more on Amazon.