Ford Q3 Earnings Highlights: Revenue Beat, EPS Miss, EV Sales Rise, Guidance Withdrawn Due To UAW Strike

Automotive company Ford Motor Company F reported third-quarter financial results after the market close Thursday. The results come just a day after the automaker reached a tentative agreement with the United Auto Workers union.

Here are the key highlights.

What Happened: Ford reported third-quarter revenue of $44 billion, which was up 11% year-over-year. The revenue beat a Street consensus estimate of $41.2 billion according to data from Benzinga Pro.

The company reported earnings per share of 39 cents for the third quarter, missing a Street consensus estimate of 45 cents.

Revenue by segment was:

• Ford Blue: $25.6 billion, +7% year-over-year
• Ford Model e: $1.8 billion, +26% year-over-year
• Ford Pro: $13.8 billion, +16% year-over-year

The company’s Model e segment, which contains the electric vehicles, reported wholesale unit sales of 36,000, which was up 44% year-over-year. The EBIT was a loss of $1.3 billion for the Model e unit, with year-to-date losses now totaling $3.1 billion.

Year-to-date through the first nine months, Ford has sold 82,000 electric vehicle units, up 23% year-over-year. Revenue for the Model e segment stands at $4.3 billion in the first nine months, up 18% year-over-year.

“Ford is able to balance production of gas, hybrid and electric vehicles to match the speed of EV adoption in a way that others can’t,” Ford CFO John Lawler said. “That’s obviously good for customers, who get the products they want – and good for us, too, because disciplined capital allocation and not chasing scale at all costs maximizes profitability and cash flow.”

The F-Series pickup truck was the No. 1 bestselling truck in the U.S. in the third quarter and through the first nine months of the year.

“I’m very optimistic about the reality we’re creating with Ford+,” Ford CEO Jim Farley said. “We’re building a more dynamic, highly talented and customer-focused company at the intersection of great vehicles, iconic brands, innovative software and high-value services.”

The company ended the third quarter with $29 billion in cash and $51 billion in liquidity.

Related Link: Trading Strategies For Ford Stock After Q3 Earnings

What’s Next: Ford recently announced organizational changes for its Ford+ end-to-end system. The new leadership is expected to raise quality and reduce costs.

Ford has nine-month EBIT of $9.4 billion versus a prior full-year guidance range of $11 billion to $12 billion.

“However, given effects of the UAW strike and with ratification of the tentative agreement with the union that was announced Wednesday night pending, Ford is withdrawing its guidance for full-year 2023 operating results,” the company said.

Ford will report fourth-quarter and full-year 2023 financial results on Thursday, Feb. 1, 2024.

F Price Action: Ford shares were trading down 4% to $10.88 in after-hours trading Thursday versus a 52-week trading range of $10.90 to $15.42.

Read Next: Ford Motor Company Q3 Earnings Preview: UAW Strike Impact, Electric Vehicles, Margins And More

Photo courtesy of Ford.