Ford Motor is set to report earnings after the bell. Here's what Wall Street expects

Ford CEO Jim Farley at the company’s Dearborn, Michigan, plant where it’s building the electric F-150 Lightning on April 26, 2022.

CNBC | Michael Wayland

DETROIT – Ford Motor is announcing fourth-quarter and 2023 earnings after the markets close Tuesday.

Here’s what Wall Street expects, based on average analysts’ fourth-quarter estimates compiled by LSEG, formerly known as Refinitiv:

  • Adjusted earnings per share (EPS): 14 cents
  • Automotive revenue: $40.12 billion

Those results would mark a 73.4% decrease in adjusted EPS compared to a year earlier as well as a 3.9% decline in automotive revenue. Ford’s 2022 fourth-quarter results included $41.8 billion in automotive revenue, net income of $1.3 billion and adjusted earnings before interest and taxes (EBIT) of $2.6 billion.

Aside from its earnings, Wall Street will be watching Ford’s 2024 guidance. Analysts expect it to be flat to slightly lower compared to 2023. However Ford’s crosstown rival General Motors last week beat expectations for earnings guidance.

Analysts forecast Ford’s guidance to be roughly between $9 billion and $11 billion, according to investor notes from several analysts.

Ford in November forecast 2023 adjusted EBIT of $10 billion to $10.5 billion, about $1 billion lower than previous guidance in light of contract negotiations with the United Auto Workers union.

Wall Street also will be watching for any additional actions by Ford to offset increasing labor costs due to the new UAW contract, which the company said is expected to cost $8.8 billion over the life of the deal, ending in April 2028.

Ford is expected to face headwinds this year including lower vehicle prices, warranty costs and continued losses for all-electric vehicles. Bright spots are expected to be its Ford Pro fleet unit and traditional Ford Blue internal combustion engine business.

This is breaking news. Please check back for updates.

– CNBC’s Michael Bloom contributed to this report.

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