Ford Motor (NYSE:) shares rose 2.4% in after-hours Wednesday after the automaker reported better-than-expected earnings for the first quarter of fiscal 2024, although revenue missed estimates.
The company reported first-quarter earnings per share (EPS) of $0.49, beating analysts’ expectations of $0.42. Revenue was $42.8 billion, slightly below the consensus estimate of $42.94 billion.
Looking ahead to all of 2024, Ford Chief Financial Officer John Lawler said the company’s adjusted EBIT forecast will remain unchanged, with performance expected at the high end of the $10 billion to $12 billion range.
However, Ford revised its adjusted free cash flow forecast upward, now expecting to generate $6.5 billion to $7.5 billion, up from its previous forecast of $6 billion to $7 billion.
What’s more, the automaker expects its capital expenditures to be between $8 billion and $9 billion this year, an adjustment from the previously wider range of $8 billion to $9.5 billion, with spending likely to trend towards the lower end border of this spectrum.
“We believe the future trajectory of earnings and margins will be a key issue for discussion,” Goldman Sachs analysts said in a note.
“We believe Pro, hybrids and Ford’s cost/product reduction efforts will be positives, but cyclical risks and challenges in the EV business could be headwinds,” they added.
The Wall Street giant raised its 2024 earnings per share estimate to $2.15 from $2, citing the strength of Ford Pro, which reported quarterly EBIT of $3 billion.