Ford Motor Company Prepares for Q1 2025 Earnings Announcement
Ford Motor Company (F), based in Dearborn, Michigan, is engaged in the development, delivery, and servicing of a variety of vehicles including Ford trucks, commercial cars, vans, SUVs, and Lincoln luxury cars. With a market capitalization of $36.6 billion, the firm also offers vehicle financing, leasing, and insurance services. The automaker is set to report its fiscal first-quarter earnings for 2025 after market close on Monday, May 5.
Analysts’ Expectations Ahead of Earnings
Before the earnings report, analysts anticipate a loss of $0.02 per share on a diluted basis. This marks a decline of 104.1% from a profit of $0.49 per share in the same quarter last year. Ford has managed to beat or match analyst expectations in three of the last four quarters, although it missed the forecasts once.
Annual Performance Projections
For the full fiscal year, analysts are projecting the company to achieve an earnings per share (EPS) of $1.34, which represents a drop of 27.2% from the prior year’s EPS of $1.84. Looking ahead to fiscal 2026, EPS is expected to rise 14.2% year-over-year to $1.53.
Stock Performance Compared to Market
Ford’s stock has significantly underperformed over the past 52 weeks, declining by 35.2%, while the S&P 500 ($SPX) has experienced only a 4.2% loss during the same period. In addition, it fell short of the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 2.3% dip.
Challenges Facing the Company
Factors contributing to Ford’s stock decline include concerns over the potential implementation of 25% tariffs on imports from Mexico and Canada. This situation poses a risk to the company’s financials, as 17% of its North American production occurs in these nations. The broader implications of tariffs, as well as possible retaliatory measures by other countries, could further strain the auto industry.
Recent Earnings Report Review
On February 5, Ford released its Q4 results, which saw its stock plummet over 7% in the subsequent trading session. The company reported revenue of $48.2 billion, which surpassed analysts’ expectations of $45.7 billion. Additionally, its adjusted EPS of $0.39 exceeded the consensus estimate of $0.32.
Analyst Sentiment and Price Target
The consensus rating among analysts for Ford stock is cautious, characterized by a “Hold” recommendation overall. Out of 23 analysts, four advocate for a “Strong Buy,” 14 suggest a “Hold,” one recommends a “Moderate Sell,” and four opt for a “Strong Sell.” The average analyst price target stands at $9.73, implying a potential upside of 12% from current prices.
On the date of publication, Neha Panjwani did not hold positions in any of the securities mentioned in this article. All information provided is for informational purposes only. For additional details, please see the Barchart Disclosure Policy here.
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