Ford Q4 results: shares rise on earnings revenue beating estimates

Ford has a mixed Q4 earnings report as revenue is up, but earnings per share are down.

Ford Source: Bloomberg

Ford stock is up in after hours US trading after beating Wall Street estimates. Ford earnings narrowly exceeded expectations.

Ford earnings: key figures

Earnings per share ( EPS) $0.30
Automotive revenue $38.7 billion
Total revenue $41.8 billion
North American profit $2.52 billion
Net loss $116 million

Ford earnings

Ford earnings per share (EPS) were $0.30 cents per share, less than the expected $0.32 per share that financial experts predicted. Ford revenue was $38.7 billion, exceeding $36 billion expected by Wall Street. North American profit was $2.52 billion. However, losses were $116 million, partially because of sluggish sales overseas.

There were also plans to restructure to boost Ford revenue, staring with job cuts and a partnership with Volkswagen. Chief financial officer (CFO), Bob Shanks, expressed displeasure with the Ford Q4 earnings report.

'It was not a year we were happy with and the fourth quarter continued that theme. We do understand the parts of the business that need to be improved, in some cases dramatically. We know what we need to do, and we are acting to do so. We are taking steps to redesign the business, particularly outside North America,' said Shanks.

‘We have consistently laid the foundation for the global redesign of our business, clearly investing to sharpen our competitiveness so we can better serve customers and invest for the future. Ford enters 2019 with a clear vision, a solid plan, and we are now in execution mode', said Hackett.

What do Ford's Q4 results mean for its share price?

Ford's share price is expected to rise after a mostly positive earnings report. Ford's current share price of $8.34 could rise despite the fact that earnings per share is down. Ford's earnings per share were disappointing, but still beat revenue estimates despite the US-China trade war that impacted the carmaker's profits. Ford also had strong sales in North America, which helped increase Ford's Q4 results.

How do Ford's Q4 results compare to other carmaker stocks?

Ford's Q4 results could predict poor earnings reports for other carmakers. With other auto companies like Tesla struggling to meet delivery demands and cutting staff, automakers' results could be lower than expected.

What is Ford's dividend forecast?

While Ford itself hasn't released its dividend forecast, JP Morgan Chase lowered its outlook for the car company. Ford's dividend forecast will potentially be worse-than-expected in 2019. The firm projected that Ford will lower its global production forecast from 5.97 million cars to 5.87 million vehicles. JP Morgan Chase also downgraded Ford's earnings per share in 2019 from $1.35 to $1.25.

Ford's mixed earnings report is probably a sign of the volatile changes carmakers have endured in 2018 and how it's evident in their 2019 earnings reports.

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