All articles tagged with #ford pro
Ford CEO Jim Farley promotes Ford Pro as the future of the automotive industry, urging people to look beyond Tesla and its Full Self-Driving system. Ford Pro, catering to commercial customers, is expected to see significant growth, with projected pretax earnings surpassing those of Ford Blue and its Model e EV unit. Despite some dealer skepticism, Ford achieved its best-ever quarter for electric vehicle sales in Q4 2023.
Ford CEO Jim Farley urged investors to shift focus from Tesla and its FSD driver-assistance systems to Ford's "Pro" fleet business, which doubled pre-tax earnings last year to $7.2 billion. The Pro unit encompasses traditional fleet and commercial businesses, telematics, logistics, and other connective operations for business customers, with expected pre-tax earnings of $8-9 billion this year. Farley emphasized the undervaluation of Ford Pro, drawing comparisons to Ferrari's undervaluation before being spun out of Fiat Chrysler. He also noted that fleet customers are adopting all-electric vehicles faster than anticipated, positioning the Pro operations as a key part of Ford's restructuring and growth plan.
Ford's stock surged after beating quarterly earnings expectations, with analysts praising Ford Pro as a standout in the company's business, despite caution about the carmaker's overall performance. Ford Pro's strong guidance and revenue growth contrasted with Ford Blue's flat performance and Model E's loss. While the positive financial results didn't immediately sway all analysts, some anticipate rising consensus estimates and increased confidence in Ford's execution. However, questions remain about how long Ford Pro can fund losses in the company's EV strategy.
Ford is set to release its Q3 2023 earnings, with a focus on its global wholesale volumes from the Ford Blue and Ford Pro segments. In Q2, Ford reported adjusted earnings of 72 cents per share, beating estimates, and saw an increase in total wholesale volume in both segments. The Ford Pro segment is expected to benefit from strong demand for commercial vans, while the Ford Blue segment is set to reflect benefits from high sales of ICE-powered vehicles. Analysts predict an earnings beat for Ford in Q3.