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Ford (F) is set to report second quarter earnings after the bell, its second time breaking down results across its new reporting units. Ford’s Q2 results also come after its crosstown rival GM (GM) reported strong earnings and raised its full-year profit guidance for a second time.
For the quarter, Ford is expected to report top-line revenue of $40.17 billion, which would be a 6% improvement from the $37.91 billion it reported a year ago but a slight dip from the $41.5 billion from Q1. Ford is also expected to post adjusted earnings per share (EPS) of $0.54 and adjusted net income of $2.13 billion.
Across Ford’s business lines in Q1, Ford Blue — its traditional gas-powered business — saw earnings before interest and taxes (EBIT) hit $2.623 billion, while the Ford Pro commercial unit hit $1.366 billion. However, the Ford Model e EV unit reported a $722 million EBIT loss for the quarter.
In terms of full-year guidance, investors will be looking for an update on the following targets:
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Full-year adjusted EBIT is expected to come in at $9 billion-$11 billion with adjusted free cash flow of about $6 billion.
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Segment level EBIT expectations for 2023:
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$7 billion in EBIT for Ford Blue
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$6 billion in EBIT for Ford Pro
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a full-year loss of $3 billion for its Model e unit
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A profit guidance raise would be welcome news for Ford investors following GM’s results.
From a deliveries standpoint, earlier this month Ford reported Q2 sales rose 9.9% from a year ago to 531,662 vehicles. The Dearborn, Michigan-based automaker saw sales gains across most of its truck and SUV portfolio. In particular, Ford trucks, with its crown jewel F-150 pickup lineup, notched a 34% sales jump. Total Ford truck sales were up 26.2%, which Ford says makes it the top-selling truck maker in the US.
Somewhat worrying for Ford and investors was a dip in EV sales, with the company noting EV sales dropped 2.8% for the quarter, with Mustang Mach-E sales down 21.1% and its E-Transit electric van sales down 23.8%. However, Ford did say Mach-E sales “quickened” at the end of Q2.
Ford also drastically cut the prices of its F-150 Lightning EV pickup earlier this month, claiming falling raw material costs and “continued work on scaling production and cost” at its Rouge factory allowed for the price reductions. It’s possible the continued sales success of Rivian’s R1T pickup, rising inventories, and the impending release of Tesla’s Cybertruck played a part in the decision.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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