Ford's (F) Q4 Earnings Fall Short Of Estimates, Improve Y/Y

Ford Motor Co. (NYSE:F) posted adjusted earnings per share of 39 cents in the fourth quarter of 2017. The reported figure was 9 cents higher than the year-ago figure. However, earnings missed the Zacks Consensus Estimate of 42 cents per share.

During the quarter, adjusted pre-tax profit came in at $1.7 billion, reflecting a decrease of $0.4 billion from the year-ago quarter.

Fourth-quarter net income came in at $2.4 billion, reflecting an increase of $3.2 billion from the year-ago quarter.

During the quarter, Ford logged automotive revenues of $41.3 billion. The Zacks Consensuses Estimate for revenues was $37.2 billion.

For full-year 2017, adjusted earnings per share came in at $1.78, increasing 2 cents from 2016. The Zacks Consensuses Estimate for revenues for 2017 was $1.82.

For full-year 2017, revenues came in at $156.8 billion, reflecting an increase of $5 billion from 2016. The Zacks Consensuses Estimate for revenues for 2017 was $147.5 billion.

Ford Automotive

During the quarter, wholesale volumes at the Ford Automotive segment increased 42,000 units to 1.75 million. Pre-tax profit decreased to $1.4 billion from $2 billion in the year-ago quarter.

In North America, during the quarter, revenues increased $1 billion to $24.1 billion. Wholesale volumes increased 36,000 year over year to 739,000 units. Further, pre-tax profit decreased to $1.6 billion from $1.9 billion in fourth-quarter 2016.

In South America, revenues increased $0.3 billion to $1.7 billion. Wholesale volumes rose 17,000 to 107,000 units. Pre-tax loss amounted to $197 million.

In Europe, revenues increased $0.9 billion to $8.1 billion. Wholesale volumes increased 26,000 units year over year to 416,000 units. The region incurred pre-tax profit of $56 million during the quarter.

In the Middle East & Africa segment, revenues declined $0.1 billion year over year to $0.8 billion. Wholesale volumes plunged 6,000 units to 35,000 units. The region incurred pre-tax loss of $70 million.

In the Asia-Pacific region, revenues increased $0.4 billion to $83.8 billion. Wholesale volumes declined 31,000 to 452,000 units. The Asia-Pacific region generated pre-tax profit of $5 million.

Financial Services

Ford Credit generated pre-tax profit of $610 million, up from $398 million in the prior-year quarter.

Financial Position

Ford had cash and cash equivalents of $9.6 billion as of Dec 301, 2017, up from $8.1 billion as of Dec 31, 2016.

2018 Guidance

The company expects 2018 adjusted EPS in the range of $1.45-$1.70 and an effective tax rate of 15%.

Zacks Rank and Top Picks

Ford carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few better-ranked automobile stocks in the same space are Daimler AG (NYSE:F) , Allison Transmission Holdings, Inc. (NYSE:ALSN) and Oshkosh Corporation (NYSE:OSK) , each carrying a Zacks Rank #2.

Daimler has a long-term growth rate of 2.8%. The company’s shares have gained 8.3% in the past 12 months.

Allison Transmission has a long-term growth rate of 10%. The company’s shares have gained 23.5% in the past 12 months.

Oshkosh has a long-term growth rate of 14.5%. The company’s shares have gained 24.9 % in the past 12 months.

Ford Motor Company Price, Consensus and EPS Surprise

Ford Motor Company Price, Consensus and EPS Surprise | Ford Motor Company Quote

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