Ford F is slated to release third-quarter 2024 results on Oct. 28, after market close. The Zacks Consensus Estimate for the to-be-reported quarter's earnings and automotive revenues is pegged at 49 cents per share and $41.2 billion, respectively.
Ford will soon report its Q3 earnings, and investors wonder what the numbers will look like. Ford's Q3 sales report looked promising in terms of volumes. However, the macroeconomic environment is deteriorating and Ford's profitability is under pressure.
Auto company earnings are coming. Investor sentiment isn't great right now.
Ford Motor (F) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Key Points Ford Stock has consistently lagged the broad market, and other automakers for decades.
Ford stock has underperformed the S&P 500 and General Motors stock as investors have become more skeptical about its EV strategy. Ford's EV strategy is under intense scrutiny amid a competitive market, and there are concerns about its ability to sustain growth and profitability. F has solid dip-buying support above the $9 level, potentially attracting more income investors to return.
24/7 Wall St. Insights Ford Motor Co. (NYSE: F) stock has far underperformed competitors and the broad market in the past two years.
General Motors and Ford Motor will likely have a tough time convincing investors when they report results that Detroit's pricing power for gasoline cars is still strong and losses from their EV ventures are dwindling.
Ford's stock remains a buy due to strong free cash flow and low valuation, despite weak growth and a challenging industry backdrop. The Manheim Used Vehicle Value Index shows declining auto prices year-over-year, and the outlook for new car pricing is soft, per S&P Global. Ford's Q2 results were disappointing, but the company maintained its FY 2024 EBIT estimate and raised its free cash flow guidance back in July.
Market's moods occasionally swing to absurd degrees. In Ford's case, its current dividend yield (7%) now exceeds its FWD P/E of 6x. There are valid concerns over its warranty costs and quality issues.
There's more to any investment than a single number.
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