Ford Outperforms In Q1, Faces Tariff Challenges Ahead, Say Analysts

Ford Motor Co F reported its first-quarter earnings on Monday. The following are comments from different analysts about the company’s performance.

BofA analyst John Murphy reiterated a Buy rating on the shares with a price forecast of $14.00.

Ford reported a first-quarter 2025 adjusted EPS of $0.14, surpassing both their own estimate of ($0.05) and the Bloomberg consensus of ($0.04).

Adjusted EBIT was $1.0 billion, exceeding the forecast of $0.03 billion. Strong performance from Ford Blue and Model E drove the beat, while Ford Credit exceeded expectations, and Ford Pro fell short.

EBIT was impacted by ~$200 million in tariff costs. Following the results and tariff impacts, the 2025 estimates have been lowered, while 2026 and 2027 estimates remain mostly unchanged, said the analyst.

Ford has suspended its guidance despite reporting strong business performance. It cites supply chain disruptions, tariff uncertainties, potential retaliatory actions, and policy changes regarding emissions regulations as the reasons.

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The company estimates a gross tariff cost of $2.5 billion for FY25, with a net EBIT impact of approximately $1.5 billion, expecting to offset 40% of the tariff costs.

Despite these challenges, Ford’s strong truck market position and large U.S. manufacturing footprint leave the company well-positioned to gain market share, opined the analyst.

Goldman Sachs analyst Mark Delaney reiterated a Neutral rating on the shares and raised the price forecast from $9.00 to $10.00.

Ford reported first-quarter revenue of $40.7 billion and adjusted EPS of $0.14, surpassing expectations. However, the company suspended its 2025 guidance due to uncertainties surrounding tariffs, policy and industry dynamics.

Ford estimates a $2.5 billion gross tariff exposure, with a net EBIT impact of $1.5 billion. Despite this, the company remains positive about its strong U.S. market position and long-term cost reduction potential.

However, the analyst said challenges from international competition and a premium valuation lead to a maintained Neutral rating on the stock.

Price Action: Ford shares traded higher by 2.56% at $10.43 at last check on Tuesday.

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