Ford Motor (F) reports earnings late Tuesday for a fourth quarter marred by the autoworkers‘ strike. Japanese rival Toyota Motor (TM) on Tuesday forecast record profit, driven by hybrid gas-electric vehicles. Ford stock chased Toyota stock higher Tuesday afternoon.
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Ford Earnings
Estimates: Analysts, on average, expect earnings per share to decline 73% to 12 cents, according to FactSet. Revenue is seen falling 2%, year over year, to $43.062 billion.
That would mark the first Ford earnings decline in five quarters and its first sales drop in seven quarters.
The United Auto Workers strike against Ford, General Motors (GM) and Stellantis (STLA) ended Oct. 30, with the auto giants making costly concessions.
Results: Check back after the close.
Outlook: Ford is expected to share its earnings and free cash flow guidance for 2024. Archrival GM on Jan. 30 provided bullish outlook.
Analysts expect Ford’s s full-year guidance for adjusted EBIT to reach $9.650 billion, per FactSet. That would be down from an estimated $10.355 billion in 2023.
The analysts forecast free cash flow of $2.494 billion, down from an estimated $4.396 billion in 2023.
Ford Stock Performance
Shares of Ford Motor rallied 3.2% on the stock market today. Ford stock has been meeting resistance at its 200-day moving average after regaining the 50-day line in late January. A move back above the 200-day line could mark an early entry for risk-tolerant investors.
GM stock and STLA stock posted gains in the 2% range on Tuesday. Stellantis reports for Q4 on Feb. 15.
Toyota stock spiked more than 8% after the Japanese carmaker forecast a record $30.3 billion net profit for the fiscal year ending March, thanks to higher global sales of hybrid vehicles. The move put Toyota stock almost 14% above a 194.43 buy point after a breakout in January.
Tesla stock staged a modest rebound Tuesday, still near multi-month lows.
Hybrid EVs Rise, Battery EVs Slow
Legacy automakers continue to pare back their big bets on „pure“ or battery electric vehicles (BEVs). They report growing demand for hybrid vehicles, while industrywide BEV sales growth has slowed.
In January, Ford’s hybrid EV sales continued to power its overall new vehicle sales, continuing the momentum seen in the final quarter of 2023.
Amid record hybrid sales, Ford’s 2023 sales totaled 1,995,912 vehicles — up 7% over 2022 and the best since 2020, capped by a slight Q4 gain despite the labor strike. Combustion vehicles still made up 90% of total 2023 sales.
While many customers are interested in buying BEVs, they are unwilling to pay premiums for them over gas or hybrid vehicles, industry watchers say. That has hurt BEV prices and profitability, Ford has said.
GM is now bringing back hybrid vehicles, hedging its earlier pursuit of all-electric vehicles.
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