Ford Q1 2022 Earnings Report Recap

F beat on earnings and on revenue

Key Takeaways

  • Ford's total number of automobiles sold came in below analysts' expectations.
  • Total automobiles sold is a metric of how many vehicles—including Ford's full line of trucks, utility vehicles, vans, and cars—the company sold across all regions.
  • Ford expects semiconductor availability to improve in the second half of the year, helping vehicle production keep up with demand.
Ford Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
Adjusted EPS Beat $0.38 $0.34
Revenue Beat $34.5B $33.8B
Total Automobiles Sold (thousands) Miss 966 971.5

Source: Predictions based on analysts' consensus from Visible Alpha

Ford (F) Financial Results: Analysis

Ford Motor Company (F) reported Q4 FY 2021 earnings results that beat analysts' expectations. Adjusted earnings per share (EPS) came in above analysts' estimates but were down 45.7% compared to the year-ago quarter. It was the third straight quarter of falling adjusted earnings. Revenue also beat consensus estimates but fell 4.8% year over year (YOY). Ford's total automobiles sold fell short of analyst forecasts for the quarter.

The company's shares rose more than 3% in extended trading. Over the past year, Ford's shares have provided a total return of 20.7%, well above the S&P 500's total return of -0.3%.

F Total Automobiles Sold

Ford sold approximately 966,000 automobiles across its global operations. But that figure was down 9.0% compared to the year-ago quarter. The company produces and sells a full line of trucks, utility vehicles, vans, and cars. But to manufacture these vehicles, the company depends on global suppliers for different components. Shortages in key components can easily lead to disruptions in production. Surging demand for consumer electronics during the pandemic resulted in a global shortage of semiconductors, which have become key components in automobiles.

The shortage has forced Ford and other automakers to scale back production, thus reducing the number of vehicles they are able to sell. Ford said that there was strong demand for its vehicles in the first quarter. However, supply chain issues reduced the speed at which the company could satisfy that demand. The global semiconductor shortage reduced the company's January and February production and shipments. The manufacturing situation, however, improved in March.

F Electric Vehicles

Ford said that it has committed to reaching global electric vehicle (EV) manufacturing capacity of at least 600,000 by the end of 2023. It hopes to be producing 2 million EVs by the end of 2026. Ford began production of its electric F-150 Lightning pickup earlier this week.

F Outlook

Ford maintained its full-year outlook for adjusted earnings before interest and taxes (EBIT) of between $11.5 billion and $12.5 billion. It also expects its full-year vehicle wholesale volumes to increase 10% to 15% from 2021 volumes. Ford expects some inflationary headwinds but is forecasting semiconductor availability to improve during the second half of the year.

Ford's next earnings report (for Q2 FY 2022) is expected to be released on July 26, 2022.

Article Sources
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  1. Ford Motor Co. "Press Release—Q1 2022," Page 1.

  2. Ford Motor Co. "Press Release—Q1 2022," Page 9.

  3. Ford Motor Co. "Press Release—Q1 2022," Page 2.

  4. Visible Alpha. "Financial Data."

  5. TradingView. "Price Chart: F and S&P 500."

  6. Ford Motor Co. "Form 10-K for the Fiscal Year Ended December 31, 2021," Page 1.

  7. Ford Motor Co. "Form 10-K for the Fiscal Year Ended December 31, 2021," Pages 18 & 34.

  8. CNBC. "Ford's First-Quarter Sales Fell 17% as the Automaker Battled a Chip Shortage."

  9. CNBC. "Ford CEO Says the Automaker Plans to Challenge Tesla as Global EV Leader."

  10. Ford Motor Co. "Press Release—Q1 2022," Page 4.

  11. Yahoo! Finance. "Earnings Calendar: F."

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