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F reported Q1 adjusted EPS of 38c, while analysts were expecting 37c per share. Automotive revenue totaled $32.1 billion in the period, slightly above the estimated $31.13 billion.
The automaker reported an unadjusted net loss of $3.1 billion, including a $5.4 billion loss from its 12% stake in Rivian, down from a net profit of $3.3 billion in the year-ago quarter.
F generated $1.6 billion from its NA operations, well below the $2.9 billion it made in the same period last year. European operations generated a pretax profit of $207 million, down from $341 million in the year-ago quarter. China operations also reported a wider loss of $53 million, compared to $15 million last year.
Wholesale volumes were down 9% in Q1 from a year earlier. Rivian’s market cap plummeted about 52% in the first quarter, halving Ford’s stake in the company to $5.1 billion from $10.6 billion.
But F reiterated its pretax adjusted FY EPS guidance of between $11.5 billion and $12.5 billion. The company also expects wholesale volume growth in the range of 10% to 15% over 2021.
Citi analyst Itay Michaeli says that F delivered a “modest Q1 beat.”
“We agree with Ford’s constructive view of price/sustainability (a key part of our prior tactical preference for Automakers > Suppliers into Q1), but the cadence required to achieve Ford’s 2022 guide (with Q1 Europe strong and China at a small loss heading into a tougher macro) suggests that the debate on future guidance risk likely won’t settle with these results. Still, we think Ford’s overall results/outlook will likely be taken as a modest positive given the macro backdrop,” Michaeli wrote in a note.
Goldman Sachs analyst Mark Delaney lowered the price target on F stock to $18.00 per share from the prior $20.00.
“While we remain constructive on the company’s dedication to EVs and new technologies, we maintain our Neutral rating on the stock given cyclical risks for margins (we’d expect pricing to moderate as volume improves, mix effects, and increased costs), increased macroeconomic risk in Europe and the US that has been a headwind for the broader sector,” Delaney said.
By Senad Karaahmetovic
