Ford Motor Co. reported earnings late Monday, but investors looked past a beat.
Ford reported a lower third-quarter profit on Monday, hurt by ongoing challenges in the auto market, sending its shares down about 3% in trading after the bell.
Ford Motor is set to report third-quarter results after markets close Monday. Wall Street analysts expect adjusted earnings per share of 47 cents and revenue of $41.88 billion.
For the third quarter, Wall Street expects Ford to post an operating profit of $2.6 billion from sales of $45 billion.
Ford's earnings are complicated by Rivian's impact and EVs, but the real issues are interest rate hikes and warranty costs. Ford's significant EV losses are greatly overstated, due to a highly aggressive depreciation method and an EV mandate compliance credits valuation of $0 in internal transactions. Ford Credit's earnings have plunged due to higher interest rates, this is the real hit to the company's overall profitability.
While tech-based growth stocks might seem like the right play, you can't ignore dividends if you want to have a strong portfolio.
In the third quarter of last year, Ford Motor Company (NYSE: F) had revenue of $43.8 billion.
Ford CEO Jim Farley has fallen in love with an electric vehicle, and it's not made by his company.
24/7 Wall St. Insights In the upcoming report from Ford Motor Co.
Evaluate the expected performance of Ford Motor (F) for the quarter ended September 2024, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
A strong Q3 earnings report on October 28, 2024, could trigger a breakout, driven by strong delivery accomplishments and a potential EPS beat. Ford's raised its full-year FCF guidance in Q2 which I expect the company to confirm. Solid Q3 EV sales, especially with regard to the Lightning F-150, signal strong earnings potential. Ford's Q3 EPS estimates have seen 10 upward revisions in the last 90 days, indicating a favorable revision trend.
Ford's stock has experienced significant volatility, rallying 176% post-pandemic before reversing and losing 63.32% by August 2024. Despite earnings weaknesses, F's auto revenues beat estimates, and management raised free cash flow guidance, supporting its attractive 7.17% dividend yield. Ford's valuation metrics are historically low, with a forward price-sales ratio of 0.246x and a forward price-earnings ratio of 5.858x, suggesting potential upside.