Ford Q4 2021 Earnings Review: Revenue Surpasses Expectations, Earnings Fall Short
Explore Ford's Q4 2021 financial performance where revenue exceeded forecasts but earnings and vehicle sales fell below analyst predictions amid ongoing supply chain challenges.
Ford's Q4 earnings fell short of expectations, yet revenue exceeded forecasts.
Major Highlights
- Ford’s global vehicle sales were lower than analyst projections.
- Total vehicle sales include the entire range of Ford’s trucks, SUVs, and cars sold worldwide.
- Persistent supply chain disruptions and the global chip shortage are anticipated to reduce vehicle sales in Q1 of FY 2022.
Source: Analyst consensus data from Visible Alpha
Ford (F) Q4 FY 2021 Financial Analysis
Ford Motor Company (F) reported mixed results for Q4 FY 2021. Adjusted earnings per share (EPS) fell 23.5% year-over-year, missing analyst expectations significantly, which had forecasted a 41.2% increase. Conversely, revenue rose 4.7% year-over-year, beating consensus estimates. However, the total number of automobiles sold did not meet analyst forecasts.
Following the report, Ford shares declined by up to 4% in after-hours trading. Despite this, Ford’s stock has delivered an impressive 79.4% total return over the past year, outperforming the S&P 500’s 16.9% return.
Ford’s Vehicle Sales Performance
Ford sold around 1.1 million vehicles globally during the quarter, marking a 10.8% decrease compared to the same period last year. The company offers a comprehensive lineup of trucks, SUVs, and cars, relying heavily on global suppliers for essential components. Disruptions in supply chains, especially the semiconductor shortage triggered by increased demand for consumer electronics during the pandemic, have constrained production.
This chip shortage has compelled Ford and other automakers to reduce manufacturing output, limiting the number of vehicles available for sale. In response, Ford partnered with semiconductor manufacturer GlobalFoundries in November to boost semiconductor production and technological advancements within the U.S.
Ford’s European division experienced an EBIT loss this quarter due to the chip shortage, though the company noted that the overall business trajectory remains positive.
Outlook for Ford
Ford projects full-year FY 2022 adjusted EBIT between $11.5 billion and $12.5 billion, representing a 15% to 25% increase over FY 2021. The company anticipates a 10% to 15% rise in vehicle wholesales for the full year, despite expecting a decline ranging from high single digits to low double digits in Q1, driven by ongoing supply chain and semiconductor challenges.
Ford’s next earnings update for Q1 FY 2022 is scheduled for release on April 28, 2022.
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