Overview of Ford Motor
Ford Motor Company, based in Dearborn, Michigan, designs, manufactures, and services a diverse range of vehicles worldwide, including trucks, commercial cars, SUVs, vans, and luxury Lincoln vehicles. With a market capitalization of $42.2 billion, the company operates through various segments such as Ford Blue, Ford Model E, Ford Pro, Ford Next, and Ford Credit.
Anticipated Earnings Report
Analysts are predicting that Ford Motor will announce third-quarter earnings after the market closes on Oct. 28. Expectations include a profit of $0.50 per share, showcasing a 28.2% increase compared to the previous year.
Future Projections
For fiscal 2024, analysts project an adjusted EPS of $1.88, a slight decrease from $2.01 in fiscal 2023. However, fiscal 2025 shows promise with an expected increase to $1.93 in adjusted EPS.
Financial Performance and Market Trends
Ford Motor has experienced a YTD decline of 13.3%, significantly below the S&P 500 Index’s 20.6% growth and the Consumer Discretionary Select Sector SPDR Fund’s 10.8% returns during the same period.
Key Events Impacting Stock Movement
Following the Q2 earnings release on Jul. 24, Ford’s stock plummeted by 18.4% due to rising expenses negatively affecting profit margins. The company’s operating margins decreased annually by 1.5% to 3.9%, while net margins declined by 43 basis points to 3.8%, raising operational efficiency concerns.
Subsequently, on Sep. 25, Ford’s shares dropped by 4.1% post analyst Adam Jonas from Morgan Stanley downgraded the company’s rating and price target due to concerns over pricing and competitive pressures, especially from Chinese automakers.
Analyst Rating and Price Targets
The consensus on Ford Motor stock is neutral, with a majority “Hold” rating. Out of 20 analysts covering the stock, six suggest “Strong Buy,” 11 recommend “Hold,” and three propose “Strong Sell.” The average price target of $12.86 indicates a potential upside of 21.7% from the current levels.
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Aditya Sarawgi has no direct or indirect positions in any securities mentioned. This article provides information solely for educational purposes. View the Barchart Disclosure Policy for additional details.
Opinions expressed in this article are those of the author and may not align with Nasdaq, Inc.’s views.
