Ford’s Stock Falls 6% On Earnings Miss

Shares of Ford Motor Co. (F) are down 6% after the Detroit automaker reported a big fourth quarter earnings miss and provided weak forward guidance.

Ford’s Q4 2022 net income came in at $1.3 billion U.S., which was $11 billion U.S. lower than in the same quarter a year earlier. For all of 2022, Ford lost $2 billion U.S. compared to a $20 billion U.S. profit recorded in 2021.

Ford’s Q4 earnings per share came in at 51 cents U.S. versus 62 cents U.S. expected by analysts. The company’s revenue increased 16% to $158.1 billion U.S. for all of 2022, including a 17% increase in the fourth quarter to $44 billion U.S.

Ford executives said the disappointing results were due to execution and supply chain issues. The company fell short of expected vehicle sales by 100,000 units, equal to $1 billion U.S. in missed earnings.

In speaking to analysts and media, Ford executives said they are looking to cut additional costs this year and are considering employee layoffs.

For this year (2023), Ford said it expects to earn between $9 billion U.S. and $11 billion U.S. in adjusted earnings, which assumes 15 million vehicle sales in the U.S. and 13 million in Europe.

Ford’s stock has declined 28% over the last 12 months to trade at $14.32 U.S. per share.