Steering its way from Dearborn, Michigan, Ford Motor Company (F) revs up its engines to develop, deliver, and service a portfolio ranging from rugged trucks to sleek Lincoln luxury vehicles across the global motoring landscape. With a market cap of $42.2 billion, Ford Motor’s operations are like a performance in five acts – Ford Blue, Ford Model E, Ford Pro, Ford Next, and Ford Credit. The auto giant is heading to unveil its third-quarter earnings post-market closure on Monday, Oct. 28.
Analyst Projections and Past Performances
Circling the racetrack ahead of the main event, analysts expect Ford to roar a profit of $0.50 per share, a 28.2% jump from the $0.39 per share reported in the previous year’s quarter. Ford has a track record of outstripping Wall Street’s adjusted EPS estimates three out of the last four quarters, with a slight skid in the last reported quarter that saw a 34.7% year-over-year dip to $0.47, missing the consensus forecasts by 26.6%.
Looking ahead to fiscal 2024, analysts forecast Ford to navigate with an adjusted EPS of $1.88, a 6.5% dip from the $2.01 logged in fiscal 2023. However, better fortunes seem to be on the horizon as Ford cruises into fiscal 2025, with its adjusted EPS projected to accelerate by 2.7% to $1.93.
Stock Performance and Market Comparisons
Wheeling its way through the market terrain, Ford has skidded 13.3% on a year-to-date basis, struggling to keep pace like a vintage car at a modern-day racetrack, lagging far 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 stretch.
The saga took a nasty turn when Ford Motor’s shares careened off the financial cliff, plummeting a steep 18.4% post the Q2 earnings release on Jul. 24. The company’s financial motor roared as revenue accelerated 6.3% year over year to $47.8 billion, but a speed bump loomed as rising expenses led to a significant skid in profit margins. Operating margins, already running on fumes, decelerated by 1.5% annually to 3.9%, while net margins hit the brakes, contracting by 43 basis points to 3.8%. This speed wobble triggered a 4.5% dip in net income to shareholders, coming in at $1.8 billion.
As the race unfolded, Ford’s shares endured a further 4.1% slide on Sep. 25, slamming the brakes post an analyst downgrade by Morgan Stanley (MS). Analyst Adam Jonas flagged Ford from “Overweight” to an “Equal-Weight,” trimming the price target from $16 to $12 on concerns surrounding falling prices and mounting competitive throes, especially from the Chinese auto juggernauts.
Market Consensus and Future Prospects
Gauging the market pulses, the consensus rating on F stock appears neutral, waving a “Hold” flag. Among the 20 analysts scrutinizing the stock, the verdict splinters – six back a “Strong Buy,” 11 cling to “Hold,” while three champion “Strong Sell.”
The mean price target of $12.86 paints a hopeful picture, hinting at a 21.7% lift-off from current price altitudes.
For more insights into the market terrain, consult Stock Market News from the Barchart stable.