Anticipating Ford’s Third Quarter Earnings

Ford is expected to publish its Q3 2023 results on October 26, reporting another quarter that saw an expansion in deliveries. We expect Ford’s revenue for the quarter to be approximately $40.28 billion, an increase of 11% from last year and slightly ahead of consensus estimates. We expect earnings to be $0.46 per share, which also beats consensus estimates and is nearly 50% higher than the same quarter last year. While the United Auto Workers union is currently on strike against major Detroit automakers, including Ford, it is not expected to have a significant impact on the company’s third-quarter earnings. See our analysis Ford earnings preview For a closer look at what to expect when the company publishes third-quarter results.

We note that the Sharpe ratio of F stock has been 0.2 Since the beginning of 2017, which is less 0.5 for the S&P 500 index over the same period. It is compared to Sharp of 1.2 For Trefis Reinforced Value Portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.

Although the macro picture looks a bit more challenging for the automotive industry due to higher interest rates, which could make financing vehicles more expensive, Ford has already reported relatively strong sales numbers for Q3, with US deliveries up . There has been an increase of 7.7%. Led by pickup trucks year-round. Ford indicated last week that truck sales in the U.S. rose 15.3%, while car sales declined about 5% and SUV sales remained largely flat. While Ford previously guided that vehicle prices would decline in 2023, due to some discounting after more than a year of significant price increases, we expect this impact to be offset by a more favorable sales mix, given that The average selling prices of trucks are generally higher. Margins at Ford’s automotive division may benefit from declining commodity prices as well as a favorable sales mix.

Although Ford stock could go higher if it beats earnings, we think it’s still undervalued. Ford stock is trading below 6x 2023 consensus earnings. We value Ford stock at approximately $17 per share, which is meaningfully ahead of the current market price. See our analysis ford evaluation, expensive or cheap For more on what’s driving our price estimate for Ford, read on. For more information about Ford’s business model and revenue trends, check out our dashboard ford Income, How does Ford make money?,

invest with trefis Market Beating Portfolio

see all trefis price estimate