DEARBORN, Mich. - Ford Motor Company (NYSE: NYSE:F) CFO John Lawler confirmed the automotive giant's financial guidance for the year 2024 during his appearance at the BofA Securities Auto Summit on Tuesday. In his discussion, Lawler reiterated the company's forecast for adjusted earnings before interest and taxes (EBIT) ranging from $10 billion to $12 billion, an adjusted free cash flow of $6 billion to $7 billion, and capital expenditures between $8 billion and $9.5 billion.
During the summit, Lawler highlighted the progress of the Ford+ growth plan, which aims to cater to customer preferences across a spectrum of gas, hybrid, and electric vehicles, both for personal and commercial use. This strategy is designed to enhance growth, margins, and capital efficiency while also aiming to reduce market cyclicality.
Ford's approach includes a focus on three customer-centric business segments: Ford Blue, which concentrates on gas and hybrid vehicles; Ford Pro, offering tailored products and services for commercial clients; and Ford Model e, dedicated to developing electric vehicles and connected, software-enabled capabilities.
The company is set to announce its first-quarter financial results for 2024 on April 24. Ford's commitment to its Ford+ plan underscores its ambition to leverage its traditional strengths while adopting new capabilities and fostering ongoing customer relationships.
This news is based on a press release statement from Ford Motor Company.
InvestingPro Insights
Ford Motor Company's reaffirmation of its financial guidance for 2024, with an expected adjusted EBIT of $10 billion to $12 billion, aligns with the optimism reflected by analysts in recent revisions. According to InvestingPro Tips, 6 analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on the company's profitability. This sentiment is further bolstered by Ford's significant dividend yield, which stands at 6.05%, demonstrating a strong commitment to returning value to shareholders. In fact, Ford has maintained dividend payments for 13 consecutive years, a testament to its financial resilience and shareholder-friendly policies.
From a valuation standpoint, Ford's P/E ratio is currently at 11.82, which is notably lower than the adjusted P/E ratio for the last twelve months as of Q4 2023, which was at 8.27. This suggests that the stock is trading at a higher earnings multiple than in the recent past, potentially reflecting investors' confidence in the company's future earnings potential. Moreover, the company's revenue growth over the last twelve months as of Q4 2023 stood at a solid 11.47%, indicating a healthy expansion in its business operations.
While Ford is a prominent player in the Automobiles industry, it is not without its challenges. The company suffers from weak gross profit margins, with the last twelve months as of Q4 2023 showing a margin of just 9.17%. This could be a point of concern for investors focusing on profitability and cost efficiency.
For those interested in a deeper dive into Ford's financial health and future prospects, InvestingPro Tips offers additional insights. There are more tips available on the platform, which can be accessed at: https://www.investing.com/pro/F. Readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable information that could further inform investment decisions.
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