Time for a Tune-Up: Ford's 1Q17 Earnings Estimates

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Part 6
Time for a Tune-Up: Ford's 1Q17 Earnings Estimates PART 6 OF 8

Updates to Watch during Ford’s 1Q17 Earnings Event

Ford’s 1Q17 release

So far in this series, we discussed Wall Street analysts’ estimates for Ford Motor Company’s (F) 1Q17 earnings. We also explored how most analysts maintain a neutral view on the company’s stock. Now, we’ll look at some possible highlights that Ford investors can watch during its 1Q17 earnings event.

Updates to Watch during Ford&#8217;s 1Q17 Earnings Event

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Protecting margins

As noted in the previous part, Ford already warned its investors about a possible decline in its first quarter earnings due to increased costs. Lately, Ford has been working to improve its manufacturing efficiencies to protect its margins. However, the steps are proving to be less effective in the current scenario. Global competition in the automotive segment is increasing quickly.

Going forward, Ford needs to ensure that its margins don’t fall more because US auto sales could still be weak in 2017. During its 1Q17 earnings event, investors should watch for any announcement about Ford’s plans to protect its margins.

Electric vehicle development

In the last few years, Tesla (TSLA) has been able to impress everyone by demonstrating electric vehicles’ true potential. A race started among mainstream automakers (VCR) to speed up their electric vehicle development.

The automakers include Ford, General Motors (GM), and Toyota (TM). Tesla will likely start delivering its low-priced Model 3 in 2H17, while General Motors mass market electric vehicle has been on the market since December 2016.

Investors should watch any announcement related to Ford’s plans to launch its electric vehicle in the coming quarter to take on the competition.

Last year, Ford revealed its intentions to start mass producing its SAE Level 4 autonomous vehicles for ride-sharing services by 2021. Read Autonomous Vehicles: Latest Updates in 2017 to learn what mainstream automakers are doing to accelerate autonomous vehicle development in 2017.

Now, let’s briefly look at Ford’s valuation multiples before its 1Q17 earnings event.


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