Ford Motor (NYSE:) shares rose 2.4% in after-hours trading Wednesday after the automaker reported better-than-expected earnings for the fiscal Q1 2024, while revenue missed estimates.
The company posted first-quarter earnings per share (EPS) of $0.49, which exceeded analysts’ expectations of $0.42. Revenue came in at $42.8 billion, slightly below the consensus projection of $42.94 billion.
Looking ahead to the full year of 2024, Ford’s CFO, John Lawler, indicated that the company’s adjusted EBIT guidance remains unchanged, with performance expected at the higher end of the $10 billion to $12 billion range.
However, Ford has revised its forecast for adjusted free cash flow upwards, now expecting to generate between $6.5 billion and $7.5 billion, an increase from the earlier projection of $6 billion to $7 billion.
Moreover, the carmaker anticipates its capital expenditures for the year to be between $8 billion and $9 billion, an adjustment from the previously broader range of $8 billion to $9.5 billion, with expenditures likely leaning towards the lower end of this spectrum.
“We believe the profit and margin trajectory going forward will be a key debate,” analysts at Goldman Sachs said in a note.
“We believe Pro, hybrids, and Ford’s cost/product efforts will be positive drivers, but cyclical risks and challenges in the EV business could be headwinds,” they added.
The Wall Street giant lifted its 2024 EPS estimate to $2.15 from $2, citing strength in Ford Pro, which reported a quarterly EBIT of $3 billion
