Ford (F) steps up to the plate with a crucial Q3 earnings coming out after the bell on Wednesday.
The consensus estimates that investors are watching are:
Q3 Revenue: $36.38 billion
Q3 Adjusted EPS: $0.31
The revenue figure would be around $700 million more than compared to a year ago, when Ford was still struggling with component and chip shortages, which negatively impacted sales.
Ford will have some big shoes to fill following GM’s strong Q3 performance, where the automaker reported a huge profit beat and record revenue. GM (GM) also reiterated its full-year EBIT forecast of of $13 billion to $15 billion, which many had expected might get cut.
The Street will be keenly watching whether Ford is able to maintain its profit forecast of full-year adjusted EBIT (earnings before interest and taxes) guidance in the $11.5 billion to $12.5 billion, which would be up 15% to 25% from 2021.
Ford warned last month that Q3 adjusted earnings would would slip to a range of $1.4 billion to 1.7 billion due to $1 billion in higher costs, though it still re-affirmed its full-year adjusted EBIT forecast.
“The supply shortages will result in a higher-than-planned number of “vehicles on wheels” built but remaining in Ford’s inventory awaiting needed parts, at the end of the third quarter. The company believes that those vehicles – an anticipated 40,000 to 45,000 of them, largely high-margin trucks and SUVs – will be completed and sold to dealers during the fourth quarter,” the company said in a statement last month.
From a deliveries standpoint, through the first three quarters of the year Ford U.S. sales are down 1% compared to a year go, with trucks down 7.7%, and cars dropping a whopping 34.4%, reflecting those component shortages hitting supply, and continued preference for SUVs among U.S. buyers. Ford U.S. SUV sales are up nearly 10% thus far in 2022.
On the positive side, the electric Mustang Mach-E, Ford Bronco, and Ford Maverick compact pickup have been strong sellers for the brand through 2022. The Street will be watching for more sales and production data concerning Ford’s electric offerings like the Mustang Mach-E and Ford Lighting EV pickup, a well as whether Ford is still on track to build 600,000 EVs annually by 2023, and 2 million by 2026.
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Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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