Ford Outperforms on Earnings, Revenue, and Vehicles Sold

^{Source: Predictions based on analysts' consensus from Visible Alpha}

Ford (F) Financial Results: Analysis

Ford Motor Company (F), the third-largest U.S. auto maker by market value, topped analyst expectations as profit, revenue, and total units sold all came in ahead of predictions despite a challenging supply chain environment.

Ford's adjusted earnings per share (EPS), excluding certain items, fell by 41% to $0.30, compared with a consensus estimate of $0.27. Revenue climbed 10% to $39.4 billion, also above expectations, on strong Ford Pro commercial products and services performance.

Lingering supply chain issues, accelerating inflation, and rising concern about a recession have diminished consumer demand for vehicles across the automobile industry. Rising interest rates, high prices, and uncertainty about the price of gasoline and oil due to the European energy crisis are also headwinds.

F Total Units Sold

Ford's sold 1.09 million vehicles, surpassing expectations. The figure, which Ford refers to as "wholesale units," is a key measure of the company's ability to deal with shortages of critical parts such as semiconductors. Ford, the maker of trucks, utility vehicles, vans, and cars, depends on global suppliers for components, so shortages can lead to production disruptions.

F Outlook and Stock Performance

Ford said it expects full-year 2022 adjusted EBIT to reach $11.5 billion, up about 15% from 2021. The company anticipates solid growth in wholesale shipments and higher earnings in North America to drive the increase.

The company's stock was little changed in after-hours trading as of 4:27 p.m. New York time. Ford shares have underperformed the broader market, dropping 17% compared with 16% for the S&P 500 Index in the past year.

Ford's next earnings report (for Q4 FY 2022) is expected to be released on Jan. 25, 2023.