Ford (F) Q3 earnings preview: Analysts expect revenue to climb despite $1B in supply chain costs
Ford (F) reports its third-quarter earnings Wednesday after the bell. Although analysts expect revenue to climb YOY, earnings growth will be harder to achieve as the company has already warned investors of an over $1 billion impact from supply chain-related costs. Take a look at the Ford 2022 Q3 earnings preview below to see what you can expect later.
Ford updates investors on Q3 2022 earnings
Last month, Ford gave investors a glimpse of what they can expect from its Q3 2022 earnings. The big story was Ford forecasting to have around 40,000 to 45,000 vehicles sitting in inventory due to parts shortages.
The shortages “disproportionally include high-demand, high-margin models of popular trucks and SUVs,” according to Ford.
For this reason, Ford expects inflation-related supply chain costs to reflect an additional $1 billion from previous forecasts. Despite the added expenses, Ford predicts Q3 operating profit to be between $1.4 billion and $1.7 billion.
GM, which reported Q3 earnings yesterday, dealt with the same issue in the second quarter, delivering the previously unfinished vehicles while beating wall street estimates with a record $41.9 billion in revenue.
Analyst expectations and preview for Ford Q3 2022 earnings
Because of the added costs in the third quarter, analysts expect a decline in earnings despite rising revenues.
According to wall street estimates, Ford expects to report:
- Q3 revenue of $36 billion to $37 billion
- Q3 operating profit of around $1.8 billion
You may notice wall operating profit estimates are higher than Ford’s September guidance. With interest rates rising, car buying behavior has been a particular area of interest.
Another thing to watch will be how Ford’s stake (about 10%) in Rivian, with RIVN share prices up about 20% during the third quarter.
Other things to watch for in Ford’s third-quarter earnings
Ford is amid an ongoing restructuring plan designed to cut costs and boost profitability. Part of this plan is to transition to a nearly all truck, SUV, and electric vehicle portfolio (higher margin segments).
Ford’s vehicle sales reached 464,674 in Q3 2022, up almost 16% from the third quarter of 2021. The automaker achieved nearly 13% market share last quarter. Electric vehicle sales tripled in September, despite a slowdown in overall sales of almost 9%.
The automaker’s EVs continue to see soaring demand across its lineup with the Mustang Mach-E, F-150 Lightning, and E-Transit commercial van.
Ford plans to achieve a 50% electric vehicle share of total sales by 2030 with an annual run rate of over 600,000 by the end of 2023. Earlier this year, Ford ramped EV spending plans to $50 billion, up from $30 billion.
So far, Ford has stuck to its full-year guidance as it expects to turn around unfinished vehicles. According to analysts, if Ford adjusts full-year guidance or updates its EV goals, it will likely impact Ford’s stock.
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Environment
Baidu- and Geely-backed JiYue brand unveils ROBO X EV that goes 0-100 km/h in under 1.9 sec
JiYue, a Chinese EV brand focused on delivering all-electric “robocars” to the masses, has unveiled its latest model, and it’s quite a deviation from its previous EVs—but in the best way. Earlier today, JiYue launched the ROBO X supercar, designed for high-speed racing. By high speed, we mean 0-100 km/h acceleration in under 1.9 seconds. My mouth is watering.
JiYue has only existed since 2021, when parent tech company Baidu announced it was expanding from software development into physical EV production, joining forces with multinational automotive manufacturer Geely.
The new “robotic EV” marque initially launched as JIDU with $300 million in startup capital before garnering an additional $400 million in Series A funding, led by Baidu, in January 2022.
In August 2023, Geely took on a larger role in JIDU alongside a greater financial stake as the brand reimagined itself as JiYue, inheriting the JIDU logo and its flagship model, the 01 ROBOCAR.
In December 2023, Baidu and Geely unveiled a second model called the JiYue 07. It was born from JIDU’s ROBO-02 concept, which debuted in 2023 and was designed to compete against the Tesla Model 3 in China.
The 07 finally launched in China earlier this year with 545 miles of range. With an all-electric SUV and sedan on the market, JiYue has unveiled an exciting new entry in the form of a performance supercar called the ROBO X. Check it out:
JiYue’s new ROBO X EV is available for pre-order now
JiYue showcased its new ROBO X hypercar in front of the crowd at the 2024 Guangzhou Auto Show earlier today. Similar to previous models but with a unique spin, JiYue described the ROBO X as an AI smart-driving supercar that, for the first time, blends artificial intelligence and autonomous driving into a high-performance, race-ready EV.
When we say “high performance,” we mean a quad motor liquid-cooled drive system that can propel the ROBO X from 0 to 100 km/h (0 to 62 mph) in under 1.9 seconds. JiYue called the new ROBO X a “performance beast” with “the perfect balance of excellent aerodynamic performance and high downforce.” JiYue CEO Joe Xia was even bolder in his statements about the ROBO X:
For the next 20 years, the design of supercars will bear the shadow of Robo X. This is the best design in the history of Chinese automobiles today, and it is a landmark presence.
Fighter-style airflow ducts bolster the EV’s aerodynamics, efficiency, and overall posture. Per JiYue, the two-seater ROBO X is expected to deliver a maximum range of over 650 km (404 miles).
The new supercar features falcon-wing doors, a carbon fiber integrated frame, and a professional racing HALO safety system offering 360° of support. The interior features an AI smart cockpit with SIMO real-time feedback to give drivers an immersive racing experience.
Furthermore, JiYue said the vehicle will utilize parent company Baidu’s Apollo self-driving technology, which could make it the first electric supercar to apply pure-vision ADAS technology that enables track-level autonomous driving.
Following today’s unveiling of the ROBO X, JiYue has officially opened up pre-orders in China for RMB 49,999 ($6,915). That said, reservation holders will need to be patient as JiYue shared that it doesn’t expect to begin mass production of the ROBO X until 2027.
What do you think? Will people be talking about the ROBO X for the next 20 years?
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes the launch of the Lectric XPedition 2.0, Yamaha e-bikes pulling out of North America, LiveWire unveils an electric scooter concept, PNY readying its cargo e-scooters for pilot testing, Royal Enfield’s first electric motorcycle, and more.
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Crude oil futures were on pace Friday for loss for the week, as a supply gut and a strong dollar depresses the market.
U.S. crude oil is down more than 2% this week, while Brent has shed nearly 2%.
Here are Friday’s energy prices:
- West Texas Intermediate December contract: $68.56 per barrel, down 14 cents, or 0.2%. Year to date, U.S. crude oil has shed about 4%.
- Brent January contract: $72.36 per barrel, down 20 cents, or 0.28%. Year to date, the global benchmark has lost nearly 6%.
- RBOB Gasoline December contract: $1.99 per gallon, up 0.46%. Year to date, gasoline has fallen more than 1%.
- Natural Gas December contract: $2.70 per thousand cubic feet, down 2.98%. Year to date, gas has gained more than 4%.
The International Energy Agency has forecast a surplus of more than 1 million barrels per day in 2025 on robust production in the U.S. OPEC revised down its demand forecast for the fourth consecutive month as demand in China remains soft.
A strong dollar also hangs over the market, as the greenback has surged in the wake of President-elect Donald Trump’s election victory.
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