Ford Q4 2021 Earnings Report Recap

F missed on earnings, beat 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, and cars—the company sold across all regions.
  • Ford said that ongoing supply chain issues and the global semiconductor shortage are likely to lead to a decline in vehicle sales in the first quarter of FY 2022.
Ford Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
Adjusted EPS Miss $0.26 $0.48
Revenue  Beat $37.7B $37.6B
Total Automobiles Sold (thousands) Miss 1,104 1,114.4

Source: Predictions based on analysts' consensus from Visible Alpha

Ford (F) Financial Results: Analysis

Ford Motor Company (F) reported mixed Q4 FY 2021 earnings results. Adjusted earnings per share (EPS) missed analysts' expectations by a wide margin, falling 23.5% compared to the year-ago quarter. Analysts expected adjusted EPS to rise 41.2%. Revenue beat consensus estimates, rising 4.7% year over year (YOY). Ford's total automobiles sold also missed analyst forecasts for the quarter.

The company's shares were down as much as 4% in extended trading. Over the past year, Ford's shares have provided a total return of 79.4%, well above the S&P 500's total return of 16.9%.

F Total Automobiles Sold

Ford sold approximately 1.1 million automobiles across its global operations. But that figure was down 10.8% compared to the year-ago quarter. The company produces and sells a full line of trucks, utility vehicles, 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. It also prompted the company in November to reach a collaboration agreement with GlobalFoundries, a semiconductor manufacturer, in order to advance semiconductor manufacturing and technology development in the U.S.

The company said that its European operations suffered an EBIT loss for the quarter due to the semiconductor shortage, but it added that "the underlying trajectory of the business continues to improve."

F Outlook

Ford expects its full-year FY 2022 adjusted EBIT to be between $11.5 billion and $12.5 billion, which reflects an increase of between 15% and 25% compared to FY 2021. It also expects full-year vehicle wholesales to rise between 10% and 15% despite a high-single- to low-double-digit decline in the first quarter. Ford cited supply chain issues and semiconductor shortages as reasons for the expected decline in Q1.

Ford's next earnings report (for Q1 FY 2022) is expected to be released on April 28, 2022.

Article Sources
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  1. Ford Motor Co. "Strategic Progress of Ford+ Growth Plan, Solid Financials in '21 Position Company for Connected EV Leadership in 2022, Beyond," Page 1.

  2. Visible Alpha. "Financial Data."

  3. Ford Motor Co. "Strategic Progress of Ford+ Growth Plan, Solid Financials in '21 Position Company for Connected EV Leadership in 2022, Beyond," Page 3.

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

  5. Ford Motor Co. "Form 10-K for the Fiscal Year Ended December 31, 2020," Page 1.

  6. Ford Motor Co. "Form 10-K for the Fiscal Year Ended December 31, 2020," Page 16.

  7. Ford Motor Co. "GlobalFoundries, Ford to Address Auto Chip Supply and Meet Growing Demand," Page 1.

  8. Ford Motor Co. "Strategic Progress of Ford+ Growth Plan, Solid Financials in '21 Position Company for Connected EV Leadership in 2022, Beyond," Page 2.

  9. Ford Motor Co. "Strategic Progress of Ford+ Growth Plan, Solid Financials in '21 Position Company for Connected EV Leadership in 2022, Beyond," Page 4.

  10. Investing.com. "Ford Motor Company (F): Financials—Earnings."

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