Ford reports Q4 earnings: EPS miss, revenue beat, strong cash flow from Rivian stock sale

Ford (NYSE: F) reported its Earnings for Q4 2022 on Thursday, missing earnings per share and beating revenue expectations, but CEO Jim Farley said the company “left about $2 billion on the table.”

Ford reported an EPS of $0.51 per share, with analysts expecting $0.62 per share. Additionally, revenue landed at $41.8 billion, while Wall Street expectations outlined $40.37 billion. Ford also said it had an operating cash flow of $6.9 billion for the year, with adjusted free cash flow for 2022 coming in at $9.1 billion.

The strong cash flow was strengthened by its relinquishment of its stake in Rivian, which began in May 2022 and “now is nearly complete.”

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“We should have done much better last year,” Farley said in the company’s Q4 Shareholder Deck. “We left about $2 billion in profits on the table that were within our control, and we’re going to correct that with improved execution and performance.”

Despite Ford’s shortfall in Q4, the company is primed for 2023 and is planning to have a strong showing in what Farley is calling a “pivotal” year for the company:

“I’m excited about 2023, which is pivotal for us. We’ve got clarity and ambition with the Ford+ plan, a strong team carrying it out, and a lineup of great products and customer experiences that’s getting even better.”

Ford said it expects to earn between $9 billion and $11 billion in adjusted EBIT this year, with annual rates of about 15 million vehicles in the United States and an additional 13 million in Europe.

Wedbush’s Dan Ives said that after GM and Tesla reported strong earnings, Ford’s performance was “soft,” giving the company an uphill battle into 2023.

Ford said it would also report operating performance based on three customer-centered business segments, including Ford Blue, its combustion-engine division, Ford e, which is dedicated to electric vehicles, and Ford Pro, geared toward commercial and fleet applications.

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“This goes way beyond how we account for the business,” said CFO John Lawler. “This is a fundamental change in how we think, make decisions and run the company – so we’re creating great experiences and value for customers and fulfilling the huge promise of Ford+.”

Disclosure: Joey Klender does not own Ford stock.

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