Ford (F) EVs set to take the spotlight in Q1 2023 earnings

Ford (F) is expected to release its first quarter 2023 earnings after market close on Tuesday, May 2, as the company’s first report to break down EV financial results separately. Wall Street analysts expect Ford’s overall earnings to increase slightly in Q1 alongside higher revenues as the industry’s shift to fully electric vehicles intensifies.

Ford EV sales in the first quarter of 2023

After selling a record 61,575 fully electric models last year, Ford’s momentum slipped in Q1, losing its position as the second-largest EV manufacturer in the US to rival American automaker General Motors (GM).

Ford sold 10,866 EVs in the first three months of the year, representing 41% growth year-over-year (YOY).

The biggest surprise was Mustang Mach-e sales fell nearly 20% to just over 5,400 units compared to 6,734 in Q1 2022, though it was mainly due to its plant in Mexico undergoing renovations to ramp production.

Meanwhile, despite a production halt earlier this year, F-150 Lightning sales reached 4,291, with demand for electric trucks climbing.

Ford continues to be a leader in the commercial segment, with E-Transit sales up 62.7% as businesses and fleets look for zero-emission alternatives.

Ford Q1 2023 earnings preview

Ford’s upcoming Q1 earnings are expected to be the first where the automaker will break down its financial results into three segments, Ford Model e (EV), Ford Pro (business and software), and Ford Blue (ICE).

Ford has already said it expects the electric vehicle business to lose $3 billion this year as it looks to double Mach-e and triple F-150 Lightning production.

This comes after Ford already lost $2.1 billion last year and a total of $6 billion since 2021. Despite the massive losses, the automaker expects its first-gen EVs to approach the breakeven point this year. However, the surplus will be more than offset by new electric investments.

As for the first quarter, we will likely see substantial losses from Ford’s EV unit with lower margins and production hurdles.

On the positive side of things, with supply chain issues easing and input costs falling, Analysts are forecasting overall revenue to increase to around $39 billion from $34.5 billion in Q1 2022.

Earnings per share (EPS) is expected to come in around 0.41 to 0.42, showing slight growth from 0.38 in the first quarter last year.

Rival GM released Q1 earnings last week, showing revenue growth of 11% to $40 billion in the first three months of 2023. GM says it expects a breakout year with new EV launches after raising earnings and cash flow guidance for the year.