Ford Earnings Beat Doesn't Impress These Analysts: Here's Why

Zinger Key Points
  • Although Ford is taking steps in the right direction, its efforts could take long to pan out, an analyst said.
  • Both EV and CV demand was strong but there are signs of softer demand/mix, another analyst stated.

Ford Motor Company F reported a revenue beat for the third quarter, but its earnings of 30 cents per share missed expectations.

Here are two analyst takes:

Goldman Sachs

Analyst Mark Delaney maintained a Neutral rating with a price target of $13.

Ford’s pricing remained solid in the third quarter and profits in both Europe and South America were strong, Delaney said in a note. He added, however, that the automotive giant reduced its EBIT guidance for the full year from $11.5-$12.5 billion to $11.5 billion.

Check out other analyst stock ratings.

"We are generally positive on the steps Ford is taking to transition toward EVs and software/services, but this is offset in our opinion by the long duration that some of these efforts will take and cyclical risk (and we’re maintaining our below-consensus 2023 EPS estimate)," the analyst added.

RBC Capital Markets

Analyst Joseph Spak maintained a Sector Perform rating, while reducing the price target from $13 to $12.

Demand for both electric vehicles (EVs) and combustion-powered vehicles (CVs) was strong, even in Europe, Spak said in a note. He added, however, that Ford’s commentary indicated “some subtle signs of softer demand/mix.”

With Argo AI shutting down, "Ford is now reprioritizing the development of L2+ and L3 applications,” the analyst wrote. “While F’s cash balance is substantial and should grow this year, we believe the war chest will be needed for the transition so this isn’t excess cash."

F Price Action: Shares of Ford had declined by 1.64% to $12.61 at the time of publication Thursday.

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Posted In: Analyst ColorEarningsNewsPrice TargetReiterationAnalyst RatingsGoldman SachsJoseph SpakMark DelaneyRBC Capital Markets
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