Earnings

Ford shares fall after fourth-quarter earnings significantly miss Wall Street’s expectations

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Ford Motor Co. signage at the Washington Auto Show in Washington, D.C., Jan. 21, 2022.
Al Drago | Bloomberg | Getty Images

DETROIT — Ford Motor‘s shares slid after it reported fourth-quarter earnings Thursday that significantly missed Wall Street’s earnings expectations and slightly missed on revenue.

The company’s shares tumbled by more than 6% in after-hours trading. Here’s how Ford performed, compared with analysts’ estimates as compiled by Refinitiv:

  • Adjusted EPS: 26 cents vs 45 cents a share expected
  • Automotive revenue: $35.3 billion vs $35.5 billion expected

For 2022, Ford estimates it will earn between $11.5 billion and $12.5 billion in adjusted pretax profits and generate between $5.5 billion to $6.5 billion in adjusted free cash flow.

The automaker reported an operating profit of $1.7 billion, or adjusted earnings of 34 cents per share, and revenue of $33.2 billion in the fourth quarter of 2020. On an unadjusted basis, Ford lost $2.79 billion during that time frame.

Analysts estimate Ford this year will earn between $1.54 and $2.35 per share on revenue of $147.5 billion, according to Refinitiv. That compares with expectations of between $1.72 and $2.05 EPS and revenue of $126.3 billion in 2021.

Ford sold 1.9 million vehicles in the U.S. in 2021, down by 6.8% as it managed through a global shortage of semiconductor chips. The parts problem forced Ford and other automakers to sporadically shutter plants and depleted vehicle inventories.

After increasing by roughly 140% in 2021, shares of Ford are down by about 3% this year.

This is breaking news. Please check back for updates.

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