The Ford show at the New York International Auto Show on March 28, 2024.
Danielle De Vries | CNBC
DETROIT- Ford engine will announce first-quarter results after markets close on Wednesday.
Here's what Wall Street expects, based on average analyst estimates compiled by LSEG:
- Profit per share: 42 cents adjusted
- Car income: $40.10 billion
These results would represent a 2.6% increase in revenue compared to a year earlier and a 32.9% decrease in adjusted earnings per share. Ford's first-quarter 2023 results include revenue of $39.09 billion; net income of $1.8 billion, or 44 cents per share; and adjusted earnings before interest and taxes of $3.38 billion.
The automaker's guidance published in February 2024 included adjusted earnings before interest and taxes, or EBIT, of between $10 billion and $12 billion; adjusted free cash flow of $6 billion to $7 billion; and capital expenditures of $8 billion to $9.5 billion.
There is less consensus on Wall Street about Ford's performance than about its cross-town rival General engines, which reported strong first-quarter results on Tuesday and raised its full-year guidance. Ford is Morgan Stanley's “top pick,” but others on Wall Street are less optimistic about the company.
“While we like Ford over suppliers, we also continue to favor GM over [Ford],” UBS analyst Joseph Spak said in an investor note earlier this month.
Ford has faced years of high warranty costs, including $1.9 billion in 2023, that have affected its earnings. The company said last year that it is at an annual disadvantage of $7 billion to $8 billion compared to traditional rivals due to production costs, quality issues and other operational inefficiencies.
Investors will look for improvements in those areas, as well as progress in CEO Jim Farley's “Ford+” restructuring plan, first announced in 2021, and any additional updates or delays to the all-electric vehicle plans.
-CNBCs Michael Bloom contributed to this report.
This is a development story. Check back later for updates.