Fly Intel: What to watch in auto sector earnings reports

Ford (F) is scheduled to report quarterly results after the market closes on April 25, while General Motors (GM) is scheduled to report before the market opens on April 30. 1. FORD OUTLOOK: When Ford reported its fourth quarter results on January 23, Ford CFO Bob Shanks said, "while 2018 was a challenging year, we put in place key building blocks to build a more resilient and competitive business model that can thrive no matter the economic environment. We are confident in our plan to transform our business." Shanks said the company balance sheet remains strong, with $23.1B of cash and $34.2B of liquidity. Shanks said Ford expected to be able to fully fund its business needs and capital plans in 2019, while maintaining cash and liquidity levels at or above its target levels. He added that Ford sees the potential for year-over-year improvement in the company's key financial metrics as it works to close the gaps versus targets. 2. FORD CFO TRANSITION: On March 21, Ford announced that CFO Bob Shanks plans to retire from the company at the end of 2019. He will be succeeded by Tim Stone, who served 20 years at Amazon (AMZN), and as CFO of Snap Inc (SNAP). Stone will join Ford on April 15 as a company officer and assume the role of CFO on June 1. He will report to Ford President and CEO Jim Hackett. Shanks will work closely with Stone on the CFO transition and then work on special projects through the end of the year. Also, the company announced that Peter Fleet, president of International Markets Group, has announced his intention to retire. Effective April 1, Mark Ovenden, currently president Ford Middle East & Africa, is named president, International Markets Group and will lead its formation. Ford also announced that Stuart Rowley, currently COO for Ford North America, is appointed to the role of president, Ford of Europe. Rowley succeeds Steven Armstrong who is being named chairman, Ford of Europe. 3. GM OUTLOOK: During the General Motors Q4 earnings conference call, on February 7, GM provided FY19 adjusted earnings per share guidance of $6.50-$7.00, against analyst expectations of $6.25, at that time. Management also said they expect Q1 cash flow "meaningfully below" historical averages and Q1 will be the weakest quarter of 2019. 4. GM Q1 SALES DOWN: More recently, on April 2, General Motors announced that it delivered 665,840 vehicles in Q1, down 7.0% compared to Q1 of last year. GM noted that sales were down compared to "a very strong first quarter of 2018." Q1 average transaction prices for GM's all-new, light-duty pickups were $8,040 higher compared to their outgoing models in Q1 of 2018, with the GMC Sierra leading the segment, according to GM, quoting J.D. Power PIN estimates.