Club holding Ford (F) on Tuesday showed investors it had righted the ship in the first quarter following a dismal end of 2022, easing our concerns that the legacy automaker had lost its way. Automotive revenue for the three months ended March 31 increased about 21% year-over-year, to $39.09 billion, topping analysts’ forecasts of $32.08 billion, according to estimates compiled by Refinitiv. Adjusted earnings-per-share (EPS) grew 66% on an annual basis, to 63 cents, exceeding estimates of 41 cents per share, Refinitiv data showed. Earnings before interest and taxes (EBIT) increased 45% from last year, to $3.38 billion, well ahead of analysts’ predictions for EBIT of $2.5 billion. Bottom Line We are pleased to see Ford quickly bounce back from some of the self-inflected wounds that plagued the fourth quarter of last year, during which the company left about $2 billion of profits on the table. But in the first quarter, management demonstrated an ability to navigate what has become a trickier macroeconomic environment filled with uncertainties ranging from the availability of credit to a potential pricing war with electric-vehicle maker Tesla (TSLA), which has cut prices several times this year. Though, Ford CEO Jim Farley made it clear Tuesday that he would not price his electric vehicles purely to gain market share. He’s focused on a roadmap of profitable growth and taking internal costs down. Ford shares are trading roughly 2% lower in after-hours trading Tuesday, as investors are likely focusing on the lack of a guidance raise and some of the steep losses at the Model e unit. But with execution improving and our patience paid for through the roughly 5% dividend yield, we are sticking by Ford. Quarterly commentary Ford Blue, which represents Ford’s gas-powered and hybrid vehicles, delivered a strong quarter and was profitable in every region in which it operates. Profits nearly doubled to $2.6 billion and margins expanded to 10.4%, a result of higher volumes and…
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