Ford Motor Co. (F) has reported fourth-quarter 2024 financial results that beat Wall Street’s top- and bottom-line forecasts.
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However, F stock is down 5% in after hours trading as the Detroit automaker forecast a difficult year ahead as it moves to improve vehicle quality and lower costs. The company announced earnings per share (EPS) of $0.39, which was ahead of the $0.35 consensus forecast of analysts. Revenue in the quarter totaled $44.90 billion, which topped the $43.02 billion expected on Wall Street.
For all of 2024, Ford reported EPS of $1.46 and record revenue, including its financing arm, of $185 billion. Unfortunately, the vehicle manufacturer provided gloomy forward guidance that calls for earnings of $7 billion to $8.5 billion and capital expenditures of $8 billion to $9 billion. The guidance sent F stock lower in after hours action.
Tariff Threats
In its outlook, Ford addressed the threat of trade tariffs, which was the elephant in the room for the company given that the U.S. auto industry is closely intertwined with Canada and Mexico. Ford’s management team said that its forward guidance does not factor in additional tariffs from the Trump administration in Washington, D.C.
The company said its 2025 guidance, which is lower than many analysts expected, “presumes headwinds related to market factors” such as 2% industry lower pricing and slower sales. “Given the pause in the current tariff situation, specifically in Mexico and Canada, we are not choosing to take any actions at this time,” said Ford Chief Financial Officer (CFO) Sherry House.
Management added that the first half of this year is expected to be weaker than the second half. The first-quarter of 2025 is projected to be breakeven for the company due to lower wholesales and less profitable vehicles being produced. However, the situation should improve throughout the summer and into fall.
F stock has declined 11% in the past 12 months.
Is F Stock a Buy?
The stock of Ford Motor Co. has a consensus Hold rating among 10 Wall Street analysts. That rating is based on one Buy, six Hold and three Sell recommendations issued in the last three months. The average F price target of $10.47 implies 4.60% upside from current levels. These ratings are likely to change in light of today’s financial results.
Read more analyst ratings on F stock
