DETROIT — Ford Motor beat Wall Road’s top- and bottom-line expectations for the fourth quarter whereas forecasting better-than-expected outcomes for 2024.

The corporate’s full-year forecast requires adjusted earnings earlier than curiosity and taxes, or EBIT, of between $10 billion and $12 billion, adjusted free money stream of $6 billion to $7 billion and capital spending of $8 billion to $9.5 billion.

Analysts had anticipated Ford’s adjusted earnings steerage to be roughly $9 billion to $11 billion, in accordance with investor notes from a number of analysts.

The automaker additionally introduced a particular dividend of 18 cents per share along with a first-quarter common dividend of 15 cents per share. The dividends are payable March 1 to shareholders of report on the shut of enterprise Feb. 16.

Shares of Ford had been up roughly 6% throughout after-hours buying and selling, including to a 4.1% enhance throughout buying and selling Tuesday to shut at $12.07.

This is how Ford did throughout the fourth quarter in contrast with what Wall Road anticipated, based mostly on common estimates compiled by LSEG, previously referred to as Refinitiv:

• Earnings: 29 cents per share adjusted vs. 14 cents per share adjusted, anticipated
• Automotive income: $43.2 billion vs. $40.12 billion anticipated

Ford CEO Jim Farley described final 12 months as a “foundational 12 months” for the automaker, particularly calling out a number of price enhancements, excessive gross margin on its hands-free BlueCruise freeway system in addition to hybrid autos, which the corporate expects to extend gross sales of by 40% this 12 months.

“It was a strong 12 months, however I need to be actually clear we’re nowhere close to our earnings potential for Ford Motor Co.,” Farley instructed traders Tuesday. “We’re actually positioned effectively this 12 months for progress and profitability, for revenues as effectively.”

For the fourth quarter, Ford reported a internet lack of $526 million, or 13 cents per share, in comparison with a revenue of $1.29 billion, or 32 cents per share, throughout the identical interval a 12 months earlier. Adjusting for one-time objects, the corporate reported earnings per share of 29 cents.

Total income throughout the interval elevated about 4% to $46 billion, up from about $44 billion a 12 months earlier. Adjusted EBIT declined 59% to $1.05 billion from the year-ago interval.

Adjusted earnings of Ford’s conventional enterprise, referred to as Ford Blue, had been down about 48% throughout the fourth quarter in comparison with a 12 months earlier to $813 million. Its Ford Professional business enterprise earned $1.81 billion, up 25% from a 12 months earlier. Ford’s Mannequin e electrical automobile unit posted a $1.57 billion loss from October by means of December, greater than doubling a lack of $631 million throughout the fourth quarter of 2022.

For the total 12 months 2023, Ford reported $10.42 billion in adjusted EBIT, according to 2022; income of $176.2 billion, up 11% in comparison with the prior 12 months; and adjusted free money stream of $6.8 billion, down $2.3 billion from the 12 months earlier. Web earnings was $4.33 billion, up from a $2.15 billion loss in 2022.

The corporate’s conventional and fleet companies assisted in offsetting $4.7 billion in losses for its EV enterprise.

Ford in November lowered its full-year forecast in mild of contract negotiations with the United Auto Employees union.

Ford Chief Monetary Officer John Lawler stated Tuesday that the corporate continues to search for methods to offset rising labor prices as a result of new UAW contract, which the corporate stated is predicted to price $8.8 billion over the lifetime of the deal, ending in April 2028. Ford has already introduced plans to delay or minimize spending on a number of EV merchandise.

“All of our EV groups are ruthlessly centered on price and effectivity in our EV merchandise as a result of the final word competitors goes to be the inexpensive Tesla and the Chinese language [automakers]” Farley stated.

Ford is predicted to face headwinds this 12 months, together with decrease automobile costs, guarantee prices and continued losses for all-electric autos. Brilliant spots are anticipated to be its Ford Professional fleet unit and conventional Ford Blue inside combustion engine enterprise.

— CNBC’s Michael Bloom contributed to this report.