Ford (F) earnings Q1 2024

DETROIT — Ford engine announces its first quarter results after the markets close on Wednesday.

Here’s what Wall Street expects, based on average analyst estimates compiled by LSEG:

• Earnings per share: 42 cents adjusted
• Automotive turnover: $40.10 billion

These results would mark a 2.6% increase in revenue compared to a year earlier and a 32.9% decline in adjusted earnings per share. Ford’s results for the first quarter of 2023 included $39.09 billion in revenue; net income of $1.8 billion, or 44 cents per share; and adjusted earnings before interest and taxes of $3.38 billion.

The automaker’s 2024 forecast released in February called for adjusted earnings before interest and taxes, or EBIT, of between $10 billion and $12 billion; adjusted free cash flow of $6 billion to $7 billion; and capital expenditures of $8 billion to $9.5 billion.

There is less consensus on Wall Street around Ford’s performance than for its crosstown rival. General engines, which reported strong first-quarter results on Tuesday and raised its guidance for the full year. Ford is Morgan Stanley’s “top pick,” but others on Wall Street are less optimistic about the company.

“While we like Ford over Suppliers, we also continue to favor GM over (Ford),” Joseph Spak, an analyst at UBS, said in a note to investors earlier this month.

Ford has faced years of inflated warranty costs, including $1.9 billion in 2023, which has hurt its profits. Last year, the company said it suffered a $7 billion to $8 billion annual disadvantage compared to traditional competitors due to production costs, quality issues and other operational inefficiencies.

Investors will be watching for improvements in these areas as well as progress on CEO Jim Farley’s “Ford+” restructuring plan, first announced in 2021, as well as any updates or further delays to its fully electric vehicle plans.

—CNBC Michael Bloom contributed to this report.

This is a developing story. Please check again for updates.