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Powered by better than expected Fourth quarter results and an optimistic outlook for 2024, Ford (New York Stock Exchange:F) shares are trading higher after Tuesday's close.
The actions were up to 6.5% after closing on Tuesday.
The automaker posted adjusted earnings of $0.29 per share on revenue of $46 billion, above the Street consensus. estimates at 17 cents and $4.4 billion, respectively.
On an unadjusted basis, the company lost $0.13 per share due to the impact of a $1.7 billion pre-tax noncash loss related to the new contract with the UAW that improved pension and post-retirement benefits for employees .
Within each segment, the electric vehicle division remains a drag on the overall business: The unit posted a fourth-quarter loss of $1.5 billion on revenue of $1.6 billion. This was only 2% more than the prior-year quarter. The sector's EBIT margin was negative 98.2%, a decrease of 57.8 percentage points compared to 2023.
Ford Pro, also categorized as its commercial division, posted a profit of $1.8 billion on revenue of $15.4 billion, an increase of 11% over the same quarter last year with an EBIT margin of 11.8% (+ 1.3 percentage points).
Ford Blue, the company's hybrid and gasoline division, posted a profit of $813 million on $26.2 billion in revenue, unchanged year over year, with EBIT margin rising 2.8 percentage points to 3. 1%.
By 2024, Ford (F) anticipates full-year adjusted EBIT of between $10 billion and $12 billion and generating $6 billion to $7 billion in adjusted free cash flow. Capital expenditures are expected to range between $8 billion and $9.5 billion.
By segment, Ford Pro is expected to generate EBIT of between $8 billion and $9 billion, between $7 billion and $7.5 billion for Ford Blue and an EBIT loss of between $5 billion and $5.5 billion for the electric vehicle division.
Finally, the company has declared a dividend of $0.15 per share and a special dividend of $0.18 per share to be paid on March 1 to shareholders of record as of February 16.
