^{Source: Predictions based on analysts’ consensus from Visible Alpha}

Ford (F) Financial Results: Analysis

Ford Motor Company (F) reported Q4 FY 2021 earnings results that beat analysts’ expectations. Adjusted earnings per share (EPS) came in above analysts’ estimates but were down 45.7% compared to the year-ago quarter. It was the third straight quarter of falling adjusted earnings. Revenue also beat consensus estimates but fell 4.8% year over year (YOY). Ford’s total automobiles sold fell short of analyst forecasts for the quarter.

The company’s shares rose more than 3% in extended trading. Over the past year, Ford’s shares have provided a total return of 20.7%, well above the S&P 500’s total return of -0.3%.

F Total Automobiles Sold

Ford sold approximately 966,000 automobiles across its global operations. But that figure was down 9.0% compared to the year-ago quarter. The company produces and sells a full line of trucks, utility vehicles, vans, and cars. But to manufacture these vehicles, the company depends on global suppliers for different components. Shortages in key components can easily lead to disruptions in production. Surging demand for consumer electronics during the pandemic resulted in a global shortage of semiconductors, which have become key components in automobiles.

The shortage has forced Ford and other automakers to scale back production, thus reducing the number of vehicles they are able to sell. Ford said that there was strong demand for its vehicles in the first quarter. However, supply chain issues reduced the speed at which the company could satisfy that demand. The global semiconductor shortage reduced the company’s January and February production and shipments. The manufacturing situation, however, improved in March.

F Electric Vehicles

Ford said that it has committed to reaching global electric vehicle (EV) manufacturing capacity of at least 600,000 by the end of 2023. It hopes to be producing 2 million EVs by the end of 2026. Ford began production of its electric F-150 Lightning pickup earlier this week.

F Outlook

Ford maintained its full-year outlook for adjusted earnings before interest and taxes (EBIT) of between $11.5 billion and $12.5 billion. It also expects its full-year vehicle wholesale volumes to increase 10% to 15% from 2021 volumes. Ford expects some inflationary headwinds but is forecasting semiconductor availability to improve during the second half of the year.

Ford’s next earnings report (for Q2 FY 2022) is expected to be released on July 26, 2022.