DETROIT — Ford Motor on Tuesday reported first-quarter results that significantly topped Wall Street’s estimates, as the automaker’s fleet and legacy operations outperformed amid growing losses in electric vehicles.
Here’s how Ford did, compared with what Wall Street expected based on average estimates compiled by Refinitiv:
- Earnings per share: 63 cents adj. vs 41 cents expected, per Refinitiv
- Automotive revenue: $39.09 billion vs $36.08 billion expected, per Refinitiv
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Despite the significant beat, Ford maintained its previously announced 2023 guidance of adjusted earnings between $9 billion and $11 billion and roughly $6 billion in adjusted free cash flow. Ford said it plans to have capital expenditures of between $8 billion and $9 billion in 2023.
Ford reconfirmed Tuesday it expects to lose about $3 billion from its EV operations, known as Model e, in 2023. The operations lost $722 million in the first quarter, Ford said.
Those losses were washed out by the company’s traditional car business, known as Ford Blue, earning $2.6 billion and the automaker’s Ford Pro fleet operations reporting $1.4 billion in earnings. The automaker said both business segments were profitable in every region where they operate.
This quarter, Ford is reporting its financial results by business unit, instead of by region, for the first time. The Detroit automaker released revised results for 2021 and 2022.
Wall Street is closely monitoring the automaker’s EV unit, known as Model e, in addition to any comments on EV pricing following Tesla price changes. Automakers are attempting to balance growth and losses/profits when it comes to EVs.
Ford on Tuesday said it would again cut the starting prices of its electric Mustang Mach-E by thousands of dollars, as it increases production and reopens order banks for the crossover.
There was additional pressure on Ford’s first-quarter results after crosstown rival General Motors last week raised key guidance for 2023 and reported results that topped Wall Street’s top- and bottom-line forecasts.
GM raised its adjusted earnings expectations to a range of $11 billion to $13 billion, or $6.35 to $7.35 a share and expectations for adjusted automotive free cash flow to between $5.5 billion and $7.5 billion.
— CNBC’s Michael Bloom contributed to this report.
This is a developing story. Please check back for additional details.