Wednesday, October 26, 2016 11:03:02 AM
By Claudia Assis, MarketWatch
Ford Motor Co. is expected to report third-quarter earnings before the bell on Thursday.
Ford (F) will report on the heels of a surprise earnings and revenue beat for rival General Motors Co (http://www.marketwatch.com/story/gm-earnings-more-than-double-on-strong-truck-sales-2016-10-25-94854413).(GM), which on Tuesday reported record third-quarter sales thanks to strong truck sales in the U.S.
And Ford knows trucks: Its iconic (and newly redesigned) F-150 has been the best-selling vehicle in the U.S. for decades. (http://www.marketwatch.com/story/the-number-one-auto-in-america-for-decades-2016-02-05)
Read more:Ford's lower profit outlook, higher spending have Wall Street grumbling (http://www.marketwatch.com/story/fords-lower-profits-more-spending-have-wall-street-grumbling-2016-09-14)
Ford and other auto makers, however, are fighting off concerns that domestic auto sales have reached a plateau after years of rising demand, and that Europe sales are under the "Brexit" cloud.
Analyst David Whiston with Morningstar said he sees an overall "unimpressive quarter" for Ford, which has been less optimistic on the U.S. auto market than GM.
Here's what to expect:
Earnings: Analysts polled by FactSet expect Ford to report adjusted earnings of 20 cents a share in the third quarter, which would be down from 45 cents a share in the year-ago period.
Estimize, which crowdsources estimates from analysts, fund managers, and academics, expects Ford to report earnings of 26 cents a share, using 109 estimates.
(https://sw.graphiq.com/w/8e03Wk6dKNn)
Revenue: The FactSet analysts forecast Ford to earn $33.8 billion in the quarter, which would compare with $35.8 billion in the year-ago period.
The Estimize analysts expect Ford to hit sales of $32.8 billion in the quarter.
Share price: Shares of Ford have lagged behind the main benchmark. So far this year, the stock has fallen more than 16%, contrasting with gains around 5% for the S&P 500 index. The underperformance grows more stark on a 12-month basis: Ford shares have fallen more than 24%, compared with losses of more than 3% for the S&P.
(https://sw.graphiq.com/w/7xpRLvGQbn7)
Other issues: Ford last month forecast lower profits for next year as it would ramp up spending to continue to invest in "emerging opportunities": electric cars, driverless vehicles and shared mobility.
The company said then its 2016 pretax profit would be around $10.2 billion, but decline in 2017 before getting better in 2018. It also forecast fewer vehicle sales for next year and 2018.
Earlier this year, the company announced an ambitious plan to sell driverless cars to be used in ride-sharing within the next five years (http://www.marketwatch.com/story/ford-believes-it-can-sell-a-driverless-car-in-five-years-2016-08-16), unveiling partnerships and investments in San Francisco Bay Area startups. Ford bought San Francisco-based shuttle startup Chariot in September, and it has beefed up its presence in Silicon Valley.
Related: Ford keeps disrupting its own business (http://www.marketwatch.com/story/ford-takes-another-step-in-disrupting-itself-2016-09-09)
The good news for Ford and other auto makers is that "gas is still cheap and Americans still want pickups and SUVs," Morningstar's Whiston said.
See also:Ford's F-150 bet pays off -- again (http://www.marketwatch.com/story/fords-f-150-bet-pays-off-again-2016-04-28)
He expects analysts to zero in on Ford management's expectations for U.S. car sales going forward, and add some color about any implications for the company about a "Brexit" fallout. Ford derives about a fifth of its revenue from sales in Europe.
GM posted an operating loss of $142 million in Europe in the third quarter, three months after posting its first profit in the region in five years, blaming most of the weakness on currency declines and industry weakness tied to the U.K.'s vote to leave the European Union.
Recent F News
- AIG names new CFO; Progyny Drops 24% After Losing Key 2025 Contract; Exicure Jumps 190% With Nasdaq Extension • IH Market News • 09/19/2024 10:26:48 AM
- Ford Motor Company Sued for Securities Law Violations - Investors Should Contact The Gross Law Firm for More Information - F • PR Newswire (US) • 09/19/2024 09:45:00 AM
- BMW, Ford and Honda Begin Operations of Vehicle-Grid Integration Joint Venture ChargeScape; Name Joseph Vellone CEO • PR Newswire (US) • 09/18/2024 12:30:00 PM
- Stingray Debuts Karaoke on Ford Vehicles: F-150 Lightning and Mustang Mach-E • GlobeNewswire Inc. • 09/17/2024 12:00:00 PM
- The Gross Law Firm Announces the Filing of a Securities Class Action on Behalf of Ford Motor Company(F) Shareholders • PR Newswire (US) • 09/16/2024 09:45:00 AM
- The Gross Law Firm Announces the Filing of a Securities Class Action on Behalf of Ford Motor Company(F) Shareholders • PR Newswire (US) • 09/16/2024 09:45:00 AM
- Form 8-A12B/A - Registration of securities [Section 12(b)]: [Amend] • Edgar (US Regulatory) • 09/13/2024 08:34:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/13/2024 08:30:07 PM
- OpenAI Unveils Strawberry AI Model Series; Boeing Stock Falls 4% Amid Strike; HR Surges 20% on Growth Forecast • IH Market News • 09/13/2024 10:12:55 AM
- Universal Technical Institute and Ford Celebrate 25 Years of Ford's Manufacturer Specific Advanced Training (MSAT) Program • PR Newswire (US) • 09/12/2024 08:15:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/12/2024 12:02:23 PM
- Ted Cannis to Retire After 35-Year Ford Career; Andrew Frick Named Interim Ford Pro Leader; Daniel Justo Appointed Head of FCSD • Business Wire • 09/12/2024 12:00:00 PM
- Class Action Filed Against Ford Motor Company (F) Seeking Recovery for Investors - Contact The Gross Law Firm • PR Newswire (US) • 09/12/2024 09:45:00 AM
- Ford Motor Company Sued for Securities Law Violations - Contact the DJS Law Group to Discuss Your Rights - F • PR Newswire (US) • 09/11/2024 12:30:00 PM
- U.S. Futures Drop Ahead of Inflation Data; Oil Rises on Hurricane Francine • IH Market News • 09/11/2024 10:29:19 AM
- GameStop plunges 11% on stock offering, DJT drops post-debate, GSK fails shingles vaccine trial • IH Market News • 09/11/2024 10:25:41 AM
- Southern California Edison and Ford Team Up to Reward Electric Vehicle Customers for Supporting the Grid • Business Wire • 09/10/2024 04:04:00 PM
- Ford Motor Company Class Action: The Gross Law Firm Reminds Ford Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of October 7, 2024 - F • PR Newswire (US) • 09/09/2024 09:45:00 AM
- Broadcom Down 10% Post-Earnings, UiPath Up 8%; Qualcomm Eyes Intel Assets; Salesforce Acquires Own Company • IH Market News • 09/06/2024 11:59:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/05/2024 09:11:52 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/05/2024 09:11:42 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/05/2024 09:11:32 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/05/2024 09:11:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/05/2024 09:11:12 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/05/2024 09:11:02 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM