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Ford Beats Analysts’ Revenue Estimates But Misses on EPS in Q4



Ford stock

On Wednesday, after the market closed, the second-largest US automaker, Ford Motor Company (F), released its fourth-quarter and full-year 2018 earnings results. On January 16, the company revealed its preliminary earnings results for 2018, which reflected weakness and drove its stock down 6.2% that day. Let’s take a quick look at some key highlights of its final fourth-quarter and 2018 earnings report.

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Key highlights

In the fourth quarter of 2018, Ford’s revenues stood at $41.8 billion, up about 1% YoY (year-over-year) while its full-year 2018 revenue rose about 2% YoY to $160.3 billion. According to the latest consensus estimates compiled by Reuters, Wall Street analysts were expecting Ford to report fourth-quarter revenue of $36.9 billion and 2018 revenue of $146.5 billion. Ford managed to beat analysts’ revenue estimates by a wide margin.

In contrast, the company missed analysts’ adjusted EPS estimates. Ford reported adjusted EPS of $0.30 in the fourth quarter and $1.30 in 2018, which was lower than analysts’ estimate of $0.32 for the fourth quarter and $1.32 for full-year 2018.

On Wednesday, Ford stock fell 1.9% in the regular trading session. At 4:33 PM ET, it was trading without any change in the after-hours trading session.

Expectations in 2019

Ford’s January 16 SEC filing said it expected revenue growth and adjusted EBIT margins to potentially improve in 2019 compared to 2018.

Over the last couple of years, Ford has faced increasing sales challenges in its key markets. In 2018, the company’s sales in the US market and its European segment fell 3.5% and 0.5% YoY, respectively while its sales in the Chinese market tanked 36.9% YoY.

As of January 22, Ford has risen 11.1% year-to-date. Other auto stocks (XLY) General Motors (GM), Fiat Chrysler Automobiles (FCAU), Ferrari (RACE), NIO (NIO), Toyota (TM), and Honda (HMC) have risen 14.1%, 14.1%, 12.3%, 3.1%, 6.5%, and 11.6%, respectively.


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