Key Takeaways
- Ford reported adjusted earnings per share of 29 cents, more than double analysts’ expectations, and projected 2024 earnings at the higher end of forecasts.
- Ford also announced a special 18 cents per share dividend to be paid in the first quarter.
- Losses in the company's electric vehicle business continued to mount, and are expected to widen further in 2024.
- Ford shares rose more than 6% in after-hours trading.
Ford (F) shares rose more than 6% in after-hours trading Tuesday after the company reported better-than-expected fourth-quarter earnings, projected strong 2024 earnings and announced plans to return more cash to shareholders.
Ford posted earnings per share of 29 cents, down from 51 cents a share a year earlier but more than double analysts’ expectations. Fourth-quarter revenue rose 4% to $46 billion, also beating expectations.
For 2024, Ford forecast adjusted earnings of $10 billion to $12 billion before interest and taxes, compared to $10.4 billion in 2023. Those projections are at the higher end of the $10 billion to $10.5 billion the company predicted in November when it was hampered by a six-week strike from the United Auto Workers union.
The company projects profits this year of between $8 billion and $9 billion at its Ford Pro commercial business. It sees a profit of $7 billion-$7.5 billion at its Ford Blue unit, which comprises gas and hybrid vehicles.
However, the company said its relatively small Ford Model e electric vehicle business is likely to post a loss of between $5 billion and $5.5 billion, as pricing pressures in the EV market continue to weigh on profitability. Losses for Ford's investment-intensive electric vehicle unit have grown steadily over the past year and totaled $4.7 billion in 2023.
Ford noted in its press release that "mainstream customer adoption of EVs (is) happening at a slower rate than the industry expected" and reiterated that the company is "deferring certain capital investments in EVs until they’re justified by demand and prospects for acceptable returns."
Nonetheless, according to Chief Financial Officer John Lawler, Ford is developing next generation EVs that the company expects will be profitable within a year of launch. "EVs are here to stay, customer adoption is growing, and their long-term upside is central to Ford,” he said.
Ford also announced a regular first-quarter dividend of 15 cents a share plus a supplemental dividend of 18 cents, to be paid on March 1. The company said it targets distributions to shareholders of 40% to 50% of adjusted free cash flow, which the automaker pegs at between $6 billion and $7 billion in 2024.
Ford shares gained 6.3% to $12.83 in after-hours trading. Through Tuesday's close, the stock was down about 10% over the past year.
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FAQs
Key Takeaways. Ford reported adjusted earnings per share of 29 cents, more than double analysts' expectations, and projected 2024 earnings at the higher end of forecasts. Ford also announced a special 18 cents per share dividend to be paid in the first quarter.
Is Ford going to pay a special dividend? ›
With approximately 4 billion shares outstanding, and assuming it returns a dividend of $0.78 per share in 2024 -- based on the special cash dividend of $0.18 per share it paid in Q1 as well as four quarterly payments of $0.15 per share -- Ford will pay out about $3.12 billion in dividends this year.
What is the Ford Outlook for 2024? ›
Full-Year 2024 Outlook
The company now expects to generate adjusted free cash flow of $6.5 billion to $7.5 billion – up from the initial outlook of $6 billion to $7 billion provided earlier this year.
What is Ford's earnings report for 2024? ›
Ford's revenue for the 2024 first quarter was $42.8 billion, up 3% year-over-year even as vehicle shipments declined slightly.
What is the special qualified dividend for Ford? ›
The company announced it would give shareholders a second, supplemental dividend that will more than double the regular dividend they usually receive. The regular dividend is 15 cents a share. The special dividend is 18 cents a share.
What is Ford's next dividend? ›
Dividend FAQ
Ford Motor Company's latest ex-dividend date was on May 7, 2024 . The F stock shareholders received the last dividend payment of $0.15 per share on June 3, 2024 . Ford Motor Company's next dividend payment will be on June 3, 2024 .
How high can Ford stock go? ›
Average Price Target
Based on 13 Wall Street analysts offering 12 month price targets for Ford Motor in the last 3 months. The average price target is $15.25 with a high forecast of $21.00 and a low forecast of $10.00. The average price target represents a 29.46% change from the last price of $11.78.
How much will Ford stock be worth in 2025? ›
Long-Term Ford Motor Stock Price Predictions
| Year | Prediction | Change |
|---|
| 2025 | $ 12.45 | 4.98% |
| 2026 | $ 13.07 | 10.20% |
| 2027 | $ 13.72 | 15.69% |
| 2028 | $ 14.40 | 21.45% |
2 more rowsIt's that time of year again when most Ford Motor Company employees will be eligible to receive their annual profit-sharing check on March 14th, 2024. This year, approximately 58,000 U.S. hourly workers will receive up to $10,416 in profit-sharing.
What is Ford's earnings forecast? ›
For the fiscal year ending Dec 2024 , the consensus EPS* forecast has increased over the past week from 1.97 to 1.99(1.02%) and increased over the past month from 1.94 to 1.97(1.55%). Of the 3 analysts making yearly forecasts, 3raised and none lowered their forecast.
Fair Value Estimate for Ford Stock
With its 4-star rating, we believe Ford's stock is undervalued compared with our long-term fair value estimate of $19 per share. We think buying Ford's stock may require investor patience for management to restructure the Ford Blue segment while scaling up the Ford Model e business.
How much does Altria pay per share? ›
How much is Altria Group Inc's dividend? MO pays a dividend of $0.98 per share. MO's annual dividend yield is 8.75%.
What is the future outlook for Ford? ›
Ford Motor Company Stock Forecast
The 14 analysts with 12-month price forecasts for Ford Motor Company stock have an average target of 14.31, with a low estimate of 10 and a high estimate of 20. The average target predicts an increase of 20.76% from the current stock price of 11.85.
What is the Ford stock price prediction for 2024? ›
Ford Stock Price Forecast 2024-2025
The forecasted Ford price at the end of 2024 is $12.10 - and the year to year change -1%. The rise from today to year-end: +3%. In the middle of 2024, we expect to see $11.98.
How is Ford doing financially? ›
Overall, Ford's revenue for the first three months of this year was $42.8 billion, up 3% from a year ago despite the decline of vehicle shipments. The company has increased revenue in each of the past three years and expects to do so again in full-year 2024, Ford said in a news release.
Why is Ford paying out two dividends? ›
Ford has committed to return to investors 40% to 50% of free cash flow. "Whenever that (regular) dividend doesn't reach 40-50% we will provide a supplemental dividend," Chief Financial Officer John Lawler told reporters on a conference call on Tuesday. "Consistency is going to be very important," he said.
Are 58000 Ford workers getting profit-sharing checks of up to $10 4000? ›
Ford UAW employees get bigger profit-sharing checks for 2023 despite strike. As a result of Ford Motor Co.'s 2023 profits in the U.S., about 58,000 U.S. hourly workers will receive a profit-sharing checks averaging $10,416, Ford Chief Financial Officer John Lawler said Tuesday.
How much is Ford profit-sharing for 2024? ›
It's that time of year again when most Ford Motor Company employees will be eligible to receive their annual profit-sharing check on March 14th, 2024. This year, approximately 58,000 U.S. hourly workers will receive up to $10,416 in profit-sharing.
How safe is Ford's dividend? ›
The higher the ratio, the greater the risk. Income investors often look for a dividend payout ratio of less than 60%. Ford's current dividend payout ratio is around 38%. That is a little higher than its average over the past decade, and it is greater than the industry average of about 31%.
