24/7 Wall St. Insights
- In the upcoming report from Ford Motor Co. (NYSE: F | F Price Prediction), Wall Street is not expecting a recovery from its previous quarterly results.
- Also: Dividend legends to hold forever.
Ford Motor Co. (NYSE: F) announces earnings on October 28. Since the last time it announced quarterly figures, the stock has fallen 20%, while the S&P 500 is 5% higher. Shares of crosstown rival General Motors Co. (NYSE: GM) have risen 14% over the period. Wall Street is not expecting a recovery from Ford’s previous quarterly report.
Ford’s shares dropped 13% when it missed forecasts for its second-quarter earnings. It did slightly better on the top line. Revenue was $44.81 billion, compared to a consensus estimate of $44.02 billion. However, per-share earnings figures were dismal at $0.47, compared to an expected $0.68.
The most significant disappointment was that the company’s warranty costs had risen $800 million from the previous quarter. Ford Chief Financial Officer John Lawler tried to be slightly optimistic, but it did not work: “We’re making real progress in raising quality, lowering costs and reducing complexity across our entire enterprise.”
Experts and the media have estimated that Ford loses $100,000 for every electric vehicle (EV) it sells. After announcing that it would invest $30 billion in EVs, Ford has retreated, particularly because of sales of its EV flagships, the F-150 Lightning and Mustang Mach-E.
Of the 27 analysts that cover the stock, according to Yahoo Finance, 16 rate it a Hold and three rate it Underperform or Sell. The consensus price target is $12.15, against a current price of $11.06. Analysts are pessimistic, and the stock sales point that way.
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