- Ford reported its fourth-quarter earnings after the bell Thursday
- The carmaker reported earnings of $0.39 vs. analysts estimates of $0.42.
- The company has reported beats in three of the last four quarters.
- View Ford’s stock price here.
Ford reported its fourth-quarter earnings for 2017 on Wednesday, January 24 after the bell.
The automaker is down 0.58% to $11.98 after reporting fourth-quarter earnings of $0.39 per share vs. Wall Street estimates of $0.42 per share and revenue of $41.3 billion vs. estimates of $36.71 billion, according to the company.
Its earnings and revenue have come out higher than Wall Street’s expectations in three of the last four quarters.
At the Deutsche Bank Global Auto Industry Conference in Detroit last week, the company announced a plan to use its capital more efficiently and invest for future growth. Part of that plan has been a focus on electric vehicles. The company wants to invest $11 billion between 2015 and 2022 to convert its product lines to electric or hybrid vehicles.
“While [Ford] said that it is hoping that will position the company for future growth, analysts have cautioned that it will pressure profitability in 2018 and beyond,” JJ Kinahan, chief market strategist at TD Ameritrade, wrote in a note to investors prior to the report.
Ford said it plans to up its game through competitive partnerships. It announced a joint venture with Chinese firm Zotye to develop and manufacture electric vehicles in China. It has also made a push into self-driving vehicles through partnerships with Lyft and Domino’s Pizza.
Also at the Deutsche Bank conference, Ford announced its 2018 guidance, citing higher commodity costs and higher currency exchange rates as causes for its lukewarm outlook despite its cost-cutting efforts. The company expects an adjusted earnings per share in the range of $1.45 to $1.70 and modest revenue gains for 2018. Wall Street estimates Ford will earn adjusted earnings of $1.61 per share.
Read more about why Tesla may suffer the same fate as Ford.
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