Ford To Report Earnings Amid New Vehicle Launches, Chip Shortage


Ford (F) will report Q4 results late Thursday amid three key vehicle launches and the chip shortage slowing production across the auto industry. Ford stock rose.


Ford Earnings

Estimates: Ford is likely to swing to a loss of 7 cents a share from earnings of 12 cents a year ago, with automotive revenue falling 10% to $32.89 billion, according to Zacks Investment Research.

Results: Check back after the close. Last month, the company reported Q4 U.S. sales fell 9.8% to 542,749 vehicles. China sales grew 30%, while Europe sales fell 15%.

In Q4, Ford launched three highly anticipated vehicles seen as the linchpin of its road ahead: the 2021 F-150, an all-new and all-electric Mustang Mach-E crossover, and Bronco Sport SUV. But they saw minimal deliveries last quarter.

Early signs are favorable. This week, Ford said the F-series continued to be America’s best-selling truck in January. It reported robust SUV sales due to the all-new Bronco Sport. Plus, the Mustang Mach-E is taking just four days to turn on dealer lots, Ford said.

But the auto giant had warned Q4 results would suffer from slower F-series production due to a measured ramp-up for the new F-150 model while the new Mustang Mach-E and Bronco incurred higher costs. Ford predicted Q4 adjusted EBIT between break-even and a $500 million loss, after reporting a Q3 gain of $3.6 billion.

Meanwhile, a global shortage of automotive chips forced Ford and other automakers to idle plants in Q1. On Thursday, Ford said it’s cutting back on some shifts due to the shortage.

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Ford Stock

Shares rose 2% to 11.43 in Thursday stock market trading. Ford stock is extended beyond buy range after topping a 9.60 buy point on Jan. 12, according to MarketSmith chart analysis. General Motors (GM) fell 0.2%. Nio (NIO) slipped 0.9%.

Ford stock got a bounce on Feb. 2, when the company and Alphabet (GOOGL) signed a six-year deal for cloud and in-car connectivity tech, as the auto giant looks to ramp up recurring revenues from vehicle services.

Meanwhile, Ford is pouring $11.5 billion into developing electric and autonomous vehicles. But highly profitable pickup trucks, SUVs and commercial vehicles remain a priority for new CEO Jim Farley.

Find Aparna Narayanan on Twitter at @IBD_Aparna.


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