The Road Ahead: Ford’s Quarterly Earnings Preview
Dearborn, Michigan-based Ford Motor Company (F) is gearing up to unveil its third-quarter earnings after the market closes on Monday, Oct. 28. The automaker, with a market cap of $42.2 billion, is expected to showcase its performance across the Ford Blue, Ford Model E, Ford Pro, Ford Next, and Ford Credit segments.
Diverging Paths: Earnings Expectations and Stock Performance
Analysts foresee Ford reporting a profit of $0.50 per share for the third quarter, marking a 28.2% increase compared to the same period last year. Despite a fluctuating track record, Ford is projected to exhibit a string of robust earnings results. For fiscal 2024, the company is anticipated to deliver an adjusted EPS of $1.88, reflecting a 6.5% decline from $2.01 in fiscal 2023. However, analysts predict a positive turn in fiscal 2025 with an estimated growth of 2.7% to $1.93.
Rocky Terrain: Stock Performance Amidst Turbulent Times
Ford has struggled on the financial front, with a YTD decline of 13.3%, significantly lagging behind the S&P 500 Index’s 20.6% gains and the Consumer Discretionary Select Sector SPDR Fund’s 10.8% returns during the same period. The company’s stock witnessed a steep 18.4% drop post its Q2 earnings release on Jul. 24. Despite a 6.3% revenue growth, escalating expenses resulted in shrinking profit margins, causing distress among investors.
Challenges Ahead: Analyst Insights and Market Sentiment
Further exacerbating Ford’s troubles, a downgrade from Morgan Stanley analyst Adam Jonas on Sep. 25 led to a 4.1% decline in the company’s shares. Concerns over declining prices and intensifying competition, particularly from Chinese automakers, have added to the mounting pressure on Ford. The consensus rating on F stock stands at neutral, with price targets suggesting a potential upside of 21.7% from current levels.