Ford Motors (F) saw its stock decline by approximately 8% in early morning trading after the company revised its 2024 earnings expectations, signaling a cautious outlook for investors. The Detroit automaker now anticipates adjusted earnings of around $10 billion for the full year, down from its previous forecast of $10 billion to $12 billion. Despite this adjustment, Ford reaffirmed its forecast for adjusted free cash flow, projecting it will fall between $7.5 billion and $8.5 billion.
In its third-quarter report, Ford announced revenues of $46 billion, reflecting a 5% year-over-year increase and marking the company’s tenth consecutive quarter of growth. However, net income dipped to $0.9 billion, a decrease of $0.3 billion, attributed in part to its strategic shift toward producing hybrid versions of its upcoming three-row SUVs instead of fully electric models as initially planned.
The company’s commercial and fleet business, named “Pro,” and its traditional operations, referred to as “Ford Blue,” accounted for most of Ford’s earnings. The Pro division reported earnings of $1.81 billion, while Ford Blue contributed $1.63 billion. In contrast, Ford’s electric vehicle division, Model e, recorded a loss of $1.22 billion, although this represented an improvement over the $1.8 billion loss experienced during the same period in 2023.
Looking ahead, Ford plans to launch a new low-cost platform in 2027 and is shifting some production work from overseas to the U.S. to ensure its vehicles qualify for EV tax credits. As Ford navigates the challenges of transitioning to electric vehicles and adjusting its product strategy, market reactions will be closely monitored in the coming months.
