Ford is facing increased competition from General Motors, which reported strong first-quarter results and raised its full-year guidance on Tuesday. Some analysts, such as UBS’s Joseph Spak, have expressed a preference for GM over Ford. Ford has been grappling with inflated warranty costs, which impacted its earnings in 2023. The company has acknowledged a $7 billion to $8 billion annual disadvantage compared to rivals due to production costs and quality issues. Investors will be closely monitoring any improvements in these areas and progress in CEO Jim Farley’s ‘Ford+’ restructuring plan, which involves a shift towards electric vehicles. The automaker’s 2024 guidance, released in February, includes adjusted earnings before interest and taxes (EBIT) of $10 billion to $12 billion, adjusted free cash flow of $6 billion to $7 billion, and capital spending of $8 billion to $9.5 billion. Ford’s performance in the first quarter will provide insights into the company’s ability to overcome these challenges and execute its strategic plan.
Ford’s Q1 Earnings Preview: Revenue Rise, Earnings Decline Expected
