Overview of Ford Motor
Dearborn, Michigan-based Ford Motor Company (F) is a global entity specializing in the development, delivery, and servicing of an array of vehicles, including trucks, commercial cars, vans, SUVs, and luxury Lincoln vehicles. With a market cap of $42.2 billion, Ford Motor operates through various segments, such as Ford Blue, Ford Model E, Ford Pro, Ford Next, and Ford Credit.
Third-Quarter Earnings Expectations
Ford Motor is set to unveil its third-quarter earnings after the market closes on Monday, Oct. 28. Industry analysts anticipate a profit of $0.50 per share, showcasing a 28.2% increase from the $0.39 per share reported in the corresponding quarter last year. Although Ford has exceeded Wall Street’s adjusted EPS estimates multiple times recently, there were instances of missing the projections as well.
Projection for Fiscal Years Ahead
For fiscal year 2024, analysts anticipate Ford to display an adjusted EPS of $1.88, demonstrating a 6.5% decline compared to $2.01 in fiscal 2023. However, in fiscal 2025, an increase of 2.7% is expected, bringing the adjusted EPS to $1.93.
Market Performance
Despite Ford’s strong legacy and market presence, its shares have experienced a 13.3% dip year-to-date, significantly underperforming the S&P 500 and Consumer Discretionary Select Sector SPDR Fund during the same period.
Analysis of Recent Events
Following the release of its Q2 earnings, Ford’s stock plummeted by 18.4% as the company’s profit margins faced a decline due to escalating expenses. This raised concerns about operational efficiency. Additionally, Ford experienced a further 4.1% drop in its shares after Morgan Stanley’s analyst downgraded the company, citing worries regarding pricing pressure and competitive challenges from Chinese rivals.
Stock Ratings and Recommendations
The consensus rating on Ford stock currently stands neutral, indicating an overall “Hold” sentiment. Among the 20 analysts covering the stock, six recommend a “Strong Buy,” 11 suggest “Hold,” and three advocate “Strong Sell.” The mean price target of $12.86 indicates a potential upside of 21.7% from the current price levels.
