Ford F recently revealed its financial performance for the second quarter of 2024. The company reported an adjusted earnings per share (EPS) of 47 cents, falling short of the Zacks Consensus Estimate of 64 cents, and marking a decline from 72 cents in the same period last year. Despite the miss, Ford’s consolidated revenues for the quarter stood at $47.8 billion, reflecting a 6.3% increase compared to the previous year.
Segmental Highlights
During the second quarter, the Ford Blue segment witnessed a 3% growth in total wholesale volume, reaching 741,000 units. Revenues from this segment also soared by 7% to $26.7 billion, surpassing expectations. On the other hand, the Ford Model e segment saw a 23% decrease in wholesale volume, totaling 26,000 units, but exceeded projections. The Ford Pro segment experienced a 3% growth in total wholesale volume, reaching 375,000 units. While revenues grew 9% year over year to $17 billion, they fell short of predictions.
Ford’s total automotive revenues for the quarter came in at approximately $44.8 billion, outperforming estimated figures, primarily driven by strong results in Ford Blue and Ford Model e segments.
Financial Position and Guidance
Ford’s adjusted free cash flow for the quarter amounted to $3.2 billion. The company had $19.95 billion in cash and cash equivalents as of June 30, 2024, with long-term debt (excluding Ford Credit) at $18.69 billion. Looking ahead, Ford revised its guidance for the full year 2024, maintaining adjusted EBIT expectations but raising adjusted free cash flow projections to $7.5-$8.5 billion.
The company also declared a regular dividend of 15 cents per share for the third quarter of 2024, payable on September 3, 2024.
Revised 2024 Projections
While Ford’s adjusted EBIT outlook for 2024 remains stable, the company has adjusted its forecast for adjusted free cash flow to $7.5-$8.5 billion, up from the prior estimate of $6.5-$7.5 billion. Capital spending is anticipated to fall within the range of $8-$9 billion.
Zacks Rank & Auto Industry Update
Ford currently holds a Zacks Rank #3 (Hold). Notable stocks in the automotive sector include Suzuki Motor Corporation (SZKMY), BYD Company Limited (BYDDY), and Honda Motor Co., Ltd. (HMC), each with their respective Zacks Rank. These companies exhibit strong potential within the industry.
Analysts forecast positive growth projections for SZKMY, BYDDY, and HMC in the coming years, suggesting a promising outlook for investors in the auto space.
