Ford (F) and General Motors (GM) posted differing quarterly results. GM blamed the shortage and
supply disruption for weak results. Ford raised its dividend and unveiled a new Ford F-150 EV pickup for
police. Both stocks rose since bottoming earlier in July 2022.
GM posted non-GAAP EPS of $1.14. Revenue rose by 4.6% Y/Y to $35.76 billion. For the year, GM
expects a net income of up to $11.2 billion. EPS will be between $5.76 and $6.76.
Ford posted non-GAAP EPS of 68 cents a share. Revenue grew by 57.1% Y/Y to $37.9 billion. For 2022,
adjusted EBIT is between $11.5 billion to $12.5 billion. It expects a strong free cash flow of $5.5 billion to
$6.5 billion.
Ford has a compelling product mix. It has new Broncos, electric Mustang Mach-Es, Rangers, and
Mavericks. The Ford Lightning is a luxury truck that will increase Ford’s margins.
Between the two firms, Ford is a more suitable investment. The company raised its dividend to 15 cents
a share per quarter. It has a growing free cash flow. It is spending billions to build its EV line-up. In the
next decade, it will pivot away from gas-powered vehicles to EVs.
Automotive investors should watch both stocks. Despite GM’s weak results, compare its performance to
Stelantis (STLA).
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