Ford Motor (NYSE:F) stock gained about 6.3% in yesterday’s extended trade and another 6% at the time of writing. The automaker reported fourth-quarter results that surpassed consensus estimates and provided upbeat guidance for 2024. Also, the company announced a special dividend of $0.18 per share along with a regular dividend of $0.15 per share.
The company’s quarterly performance benefited from favorable net pricing and strong demand for its commercial vehicles. However, a slowdown in electric vehicle sales impacted Ford’s results to some extent.
Ford’s Q4 Performance
The company reported adjusted earnings per share (EPS) of $0.29, down 43.1%, but surpassed analysts’ consensus estimate of $0.12. Meanwhile, sales increased by 4.5% year-over-year to $46 billion. This came above analysts’ expectations of about $43.1 billion.
Segment-wise, revenue from the company’s commercial vehicle unit, Ford Pro, witnessed an 11% year-over-year growth, while revenue from Ford Blue, a lineup of gas and hybrid vehicles, remained flat.
Nevertheless, the company’s overall performance was negatively impacted by a loss of $1.57 billion reported by its electric vehicle (EV) unit, compared with a loss of $631 million in the fourth quarter of 2022.
2024 Outlook
Ford expects adjusted earnings before interest and taxes between $10 billion to $12 billion. The forecast remained higher than consensus estimates of $9.24 billion.
Additionally, the company aims to generate $6 billion to $7 billion in adjusted free cash flow, with capital expenditures of $8 billion to $9.5 billion.
What is the Price Target for F Stock?
Overall, the Street has a Hold consensus rating on Ford stock. The average F stock price target of $13.45 implies an 11.4% upside potential from the current level. Shares have gained 18.7% over the past three months.
