Ford (F) is slated to launch its fourth quarter 2022 earnings after market shut on Thursday, February 2, because the auto business’s shift to electrical automobiles heats up. Right here’s a rundown of what you may count on.
Ford EV gross sales in 2022
After ramping up electrical automobile manufacturing all year long, Ford bought a document 61,575 items in 2022, up 126% year-over-year (YOY), making it the second largest EV maker within the US behind Tesla.
The Ford F-150 Lightning is the best-selling EV truck since its launch in Might, promoting 15,617 items to this point (by way of December 2022).
Ford can also be dominating the electrical van market with its E-Transit claiming 73% of the phase promoting 6,500 EV vans in 2022. The Mach-E SUV continues constructing momentum, with gross sales climbing 45.4% in 2022 to 39,458, making it one of many top-selling EVs of the yr.
Is an EV value conflict coming?
Talking of the Mach-E, Ford slashed costs earlier this week amid rising hypothesis of an EV value conflict on the horizon.
After Tesla dropped the costs throughout its lineup by as much as 20%, the EV maker reported seeing “unprecedented demand,” with many shops breaking data. Though this solved Tesla’s supposed demand downside, analysts predicted it may create a spillover impact with over BEV producers, placing them able to compete.
Marin Gjaja, chief buyer officer for Ford’s EV division, stated this week:
We’ve to compete. It’s a aggressive market, and it simply received much more aggressive due to what Tesla did. We’re not going to cede floor to anybody.
Ford additionally said it might considerably ramp manufacturing of its Mach-E to satisfy demand and stay aggressive.
Ford This autumn 2022 earnings preview
Analysts count on a major rise in Ford’s fourth-quarter 2022 earnings because the auto business recovers from provide chain disruptions which have ripped the market over the previous few years.
The Wall Avenue consensus expects Ford to report $0.62 earnings per share (EPS) on $40.73 billion in income. Estimize has EPS estimates barely greater at $0.63 EPS on $41.39 income.
A yr in the past, in This autumn 2021, Ford’s gross sales took a success from the continuing semiconductor shortages and different provide chain points, reporting income of $37.68 billion.
Rival Basic Motors launched its This autumn earnings report Tuesday, displaying income progress of 28% and EPS progress of 57% YOY. Nevertheless, like many within the business, rising enter prices are squeezing internet revenue margins within the fourth quarter.
With latest value cuts, Ford’s margins will probably be one other factor to look out for. In This autumn 2021, Ford’s gross revenue margin was 10.99%.
Ford’s inventory is up 22% in 2023 however continues to be down over 40% from its excessive of $25.87 per share final January.
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