Ford Motor Co. (F) is one of the leading global auto manufacturers and auto financial services providers. The company’s product line boasts of heavyweights such as the legendary Ford Mustang and the F-Series truck, which has been the highest-selling vehicle in the U.S. for the last 33 years. It also owns the luxury vehicle brand, Lincoln.
Ford is gaining from its product launches, global expansion plans, efficient capital deployment and success of the One Ford plan. The company is renewing the majority of its product line-up and has planned several vehicle launches under the One Ford plan, which is helping boost sales. However, Ford's European operations continue to be loss-making despite restructuring initiatives. Weakness in South America, Middle East & Africa, and Europe as well as frequent product recalls and rising structural expenses are other concerns.
As a result, investors have been eagerly awaiting Ford’s latest earnings report. Let’s take a quick look at this Michigan-based automobile giant’s first-quarter release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Ford for the first quarter has been stable at 25 cents over the past 30 days. Moreover, the automaker has a track record of delivering positive earnings surprises. It has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of around 7.69%.
Zacks Rank
Ford currently has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings Miss Estimates
Ford raked in adjusted earnings of 23 cents per share that missed the Zacks Consensus Estimate of 25 cents. Moreover, adjusted earnings were lower than 25 cents in the year-ago quarter.
Revenues Lag Estimates
Ford logged revenues of $33.9 billion, missing the Zacks Consensus Estimate of $34.20 billion. Revenues were also $2 billion lower than a year-ago.
Key Stats/Developments to Note
Ford reported a decline in wholesale volumes to 1.57 million in the first quarter.
Ford affirmed the pre-tax profit guidance, excluding special items, in the range of $8.5 billion to $9.5 billion for 2015. This is substantially higher than $6.3 billion recorded in 2014 as Ford expects better results from all five geographic segments in 2015. The company also raised its guidance for operating margin in North America and reduced the guidance for profits from South America.
Market Reaction
Ford’s share price fell 0.6% following the release. Clearly, the initial reaction to the release is negative.
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