: Ford stock rallies after reinstating 2023 guidance, with FCF above current expectations

Shares of Ford Motor Co. F rallied 1.5% toward a one-month high in premarket trading Thursday, after the automaker provided full-year guidance for profitability and free cash flow, after withdrawing guidance in October due to the labor strike. The company now expects 2023 adjusted earnings before interest and taxes of $10.0 billion to $10.5 billion, compared with guidance provided in July of between $11 billion and $12 billion. And Ford now expects adjusted free cash flow of between $5.0 billion and $5.5 billion, which is down from previous guidance of between $6.5 billion and $7 billion, but above the FactSet consensus of $4.26 billion. Ford said it expects the new U.S. labor agreement with the United Auto Workers to cost $8.8 billion over the lift of the contract, or about $900 per vehicle by 2028. Ford’s stock has lost 8.9% year to date through Wednesday, while shares of rival General Motors Co. GM have declined 5.6% and the S&P 500 SPX has gained 0.8%.

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