Group 1: Dividend Risks - Both Ford and UPS are at risk of cutting their dividends due to challenging financial conditions, with UPS planning to pay out about $5.5 billion in dividends in 2025 and Ford potentially using up to 89% of its free cash flow (FCF) on dividends in 2025 [4][6] - UPS aims to pay out approximately 50% of its earnings in dividends, while Ford targets 40% to 50% of its FCF [2][4] - The trading environment has deteriorated, leading both companies to suspend or not update their guidance, with UPS experiencing a 9% decline in average daily volumes in the second quarter [5][6] Group 2: Company Performance - Ford's transition from internal combustion engine (ICE) vehicles to electric vehicles (EVs) is progressing slowly, with significant losses in its EV segment, reporting a loss of $5.1 billion in 2024 [10] - UPS is shifting its revenue mix from low-profitability business-to-consumer deliveries to higher-margin deliveries in small and medium-sized businesses (SMBs) and healthcare, which is expected to improve its financial performance [11][12] - UPS has seen impressive growth in its SMB segment, increasing its share of U.S. volume from 27% in 2021 to 28.9% in 2024, with a goal of reaching 40% [13] Group 3: Strategic Outlook - UPS is investing in productivity-enhancing technologies, which are expected to lead to cost reductions and improved returns on assets [12] - Ford faces significant challenges in the EV market, particularly with competition from Tesla, while UPS is on a better strategic trajectory despite near-term headwinds [14]

Ford Motor Company (F) reported first-quarter 2025 adjusted earnings per share of 14 cents, which surpassed the Zacks Consensus Estimate of breakeven earnings but declined from 49 cents recorded in the year-ago quarter. The company’s consolidated first-quarter revenues came in at $40.66 billion, down 5% year over year. F’s total automotive revenues came in at $37.42 billion, topping the Zacks Consensus Estimate of $35.48 billion but decreasing from $39.89 billion generated a year ago.The company has suspend ...

Ford (F) is slated to release first-quarter 2025 results on May 5, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s EPS and automotive revenues is pegged at breakeven and $35.5 billion, respectively.The earnings estimate for the to-be-reported quarter has moved up by 2 cents over the past seven days. In the year-ago period, the company reported EPS of 49 cents. The Zacks Consensus Estimate for quarterly revenues suggests an 11% decline from the year-ago quarter’s figure. Ima ...

In its upcoming report, Ford Motor Company (F) is predicted by Wall Street analysts to post break-even quarterly earnings per share, reflecting a decline of 100% compared to the same period last year. Revenues are forecasted to be $35.48 billion, representing a year-over-year decrease of 11.1%.The consensus EPS estimate for the quarter has been revised 8.7% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimate ...