Market Overview

A Multitude Of Factors Surround Ford Ahead Of Earnings


Ford Motor Company (NYSE: F) is scheduled to report its Q2 results before Tuesday's market open. The Estimize community (based on 73 estimates) is calling for the company to earn $0.36 per share on revenue of $35.917 billion. This compares to the Wall Street consensus estimate estimating the company to earn $0.35 per share on revenue of $35.925 billion.

Here is a summary of what Wall Street's top analysts are saying heading into the quarterly print.

UBS: Expect Beat With Possible Raise

Colin Langan of UBS commented in a note in mid-July that Ford is expected to earn $0.42 per share in the second quarter. The analyst is expecting Ford's North American pre-tax profit to drop $270 million from a year ago due to a lower truck mix and higher launch costs which were only partially offset by pricing and higher volume.

Ford's operation in Asia is expected to remain flat as costs associated with new launches will offset gain from higher volumes. South American profits will likely rise $270 million year-over-year while EU is expected to fall $60 million.

Looking past the quarter, Langan suggested that Ford could post upside to its full year financials with the F-150 performing "better than ever expected" while also benefiting from pricing, commodity costs, warranty and launch costs that will act as tailwinds.

Shares remain Buy rated with an unchanged $19 price target.

Buckingham: June's ATP ‘One Of The Best' Since 2013

Joseph Amaturo of Buckingham Research Group commented in a note in early July that Ford's Average Transaction Price (ATP) rose 7.4 percent year-over-year, marking "one of the best" monthly reads since mid-2013.

Amaturo continued that Ford's full-size pickup and SUV ATPs were up 9.7 percent and 16.7 percent, respectively. Looking forward, the analyst expects the gains to continue as the transition to the new F-150 continues.

Shares remain Neutral rated with an unchanged $15 price target.

Sterne Agee CRT: Earnings To Accelerate

Michael Ward of Sterne Agee CRT commented in a note in early June that Ford's earnings are set to acceleration with the production of new vehicle programs in North America and overseas.

Ward singled out Ford's sales of its F-150, noting that it has been "better than expected" and should result in earnings acceleration heading into 2016 after dragging down results over the last nine months.

Finally, the analyst noted that Ford will see a lower revenue comp in the second quarter from its foreign operation due to currency exchanges. However, local sourcing and hedging should yield a "limited" impact on the results.

Shares remain Buy rated with an unchanged $20 price target.

Latest Ratings for F

Nov 2020Morgan StanleyDowngradesOverweightEqual-Weight
Nov 2020UBSMaintainsNeutral
Nov 2020JefferiesMaintainsBuy

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