Ford Motor (NYSE:F) stock gained about 6.3% in yesterday’s extended trade and another 6% at the time of writing. The automaker reported fourth-quarter results that surpassed consensus estimates and provided upbeat guidance for 2024. Also, the company announced a special dividend of $0.18 per share along with a regular dividend of $0.15 per share.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
The company’s quarterly performance benefited from favorable net pricing and strong demand for its commercial vehicles. However, a slowdown in electric vehicle sales impacted Ford’s results to some extent.
Ford’s Q4 Performance
The company reported adjusted earnings per share (EPS) of $0.29, down 43.1%, but surpassed analysts’ consensus estimate of $0.12. Meanwhile, sales increased by 4.5% year-over-year to $46 billion. This came above analysts’ expectations of about $43.1 billion.
Segment-wise, revenue from the company’s commercial vehicle unit, Ford Pro, witnessed an 11% year-over-year growth, while revenue from Ford Blue, a lineup of gas and hybrid vehicles, remained flat.
Nevertheless, the company’s overall performance was negatively impacted by a loss of $1.57 billion reported by its electric vehicle (EV) unit, compared with a loss of $631 million in the fourth quarter of 2022.
2024 Outlook
Ford expects adjusted earnings before interest and taxes between $10 billion to $12 billion. The forecast remained higher than consensus estimates of $9.24 billion.
Additionally, the company aims to generate $6 billion to $7 billion in adjusted free cash flow, with capital expenditures of $8 billion to $9.5 billion.
What is the Price Target for F Stock?
Overall, the Street has a Hold consensus rating on Ford stock. The average F stock price target of $13.45 implies an 11.4% upside potential from the current level. Shares have gained 18.7% over the past three months.
