Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$11.35Last close (Oct 26, 2023)
Post-Earnings Price$10.93Open (Oct 27, 2023)
Price Change
$-0.42(-3.70%)
- Ford's hybrid vehicles, such as the F-150 hybrid, have higher margins than their highest-volume gas versions due to strong customer demand and pricing power, leading to increased profitability.
- Ford remains committed to achieving an 8% EBIT margin on their second-generation EVs by 2026 by focusing on cost reduction through vertical integration, battery efficiency, and scaling manufacturing processes.
- Ford Pro continues to see strong demand with a robust order bank, indicating future revenue growth and strong performance in this segment.
- Operational inefficiencies and quality issues are increasing warranty costs significantly; the company reported a $1.2 billion year-over-year increase in warranty expenses, with $900 million attributed to quality issues.
- Delays and uncertainties in EV investment due to lower-than-expected demand; Ford is pushing out about $12 billion of EV spending and adjusting future capacity to better match demand, raising concerns about achieving targeted EV profitability.
- Supply chain constraints and decreased volumes in profitable segments like Ford Pro; there was a decrease in Ford Pro volume due to supplier constraints and seasonality, affecting margins and growth prospects.
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