Cars and Drivers

Analysts Disappointed About Ford

courtesy of Ford Motor Co.

The securities analysts as a group have decided that earnings prospects for Ford Motor Co. (NYSE: F) are mediocre. According to Yahoo! Finance, the mean recommendation among 20 analysts who cover Ford is 2.6, where 1 is a “strong buy” and 5 is a “sell.”

Bank of America and Credit Suisse are among those banks that have downgraded Ford this year. Bank of America’s rating is Neutral and Credit Suisse’s at Underperform.

The primary reason for concern is forecasts for the current quarter and the entire year. Revenue in this quarter is expected to rise 3% to $36.2 billion. For the full year, 2% to $143.3 billion.

Ford, like all global car companies, relies primarily on the EU, U.S. and Chinese markets.

China was a weak point for Ford last month. The company announced:

Ford’s year-to-date sales in China increased seven percent from 2015 with 391,294 vehicles sold. In April, Ford sold 82,324 vehicles, down 11 percent compared to April 2015.


The U.S. sales were mediocre. Total sales for April were up 4% over the same period last year, to 231,316. Pickup sales were strong. Sales of the flagship F-150 were up 13% to 70,774. However, Ford brand cars sales fell 11.5% to 60,494. Fusion sales were particularly soft.

Ford’s most recently reported quarter should have calmed some nerves. Net income rose from $1.3 billion in the period a year ago to $2.5 billion. Ford’s shares are off 4.6% this year, and 15% over the past two years. The industry, and not just Ford, has begun to hit a slowing world car market.

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.