Ford Posts Mixed Q4 Results; Shares Decline 4.2%

Multinational automobile major Ford Motor Company (NYSE: F) has reported mixed results for the quarter ended December 31, as revenues surpassed but earnings missed estimates.

Following the results, shares of the company declined 4.2% to close at $19.06 in Thursday’s extended trading session.

Revenue & Earnings

Ford’s revenues at end of the quarter stood at $37.7 billion, up 5% year-over-year. Moreover, the figure outpaced the consensus estimate of $35.77 billion.

The company reported quarterly earnings of $0.26 per share, a decline of 23.5% from the year-ago period. Further, the figure failed to surpass the consensus estimate of $0.42.

Other Operating Metrics

Ford’s adjusted EBIT margin improved from 4.8% in the previous year to 5.4%. Further, the net income margin of 32.6% compares favorably with the year-ago loss of 7.8%.

Meanwhile, the company reported an adjusted ROIC (Return on Invested Capital) of 9.8% compared to 0.7% a year ago.

The company forecasts to double its worldwide EV manufacturing capacity to at least 600,000 by 2023.

Management Commentary

The CEO of Ford, Jim Farley, said, “Financial performance is obviously critical. We’re also proud that customers see how Ford is taking EVs mainstream, and have already ordered or reserved more than 275,000 all-electric Mustang Mach-E SUVs, F-150 Lightning pickups and E-Transit commercial vehicles – and we’re breaking constraints to deliver every one of them as fast as we can.”

Stock Rating

Consensus among analysts is a Moderate Buy based on 8 Buys, 7 Holds and 2 Sells. The average Ford stock prediction of $24.13 implies upside potential of 21.3% from current levels. Shares have gained 74.9% over the past year.

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