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Analysts’ Expect Ford to Post Lower Revenues in 4Q16

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Dec. 4 2020, Updated 10:52 a.m. ET

Trend in Ford’s revenues

In 3Q16, Ford’s (F) revenues stood at $35.9 billion—5.9% lower than in 3Q15, but much higher than analysts’ revenue estimate of $33.1 billion. Its low revenues were primarily due to the company’s 11% lower sales volume in North America. Now, let’s take a look what analysts estimate for Ford’s revenue in 4Q16.

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4Q16 revenue estimates

Analysts estimate that Ford’s 4Q16 revenues will be at $35.1 billion—about 7.2% lower than the same quarter last year.

Apart from analysts’ recommendations, it’s also important for investors to pay attention to revenue estimates. They might reflect market expectations for the company. The estimates can also serve as a proxy for what might be priced into the market.

Along with sales stagnation in the US, Ford has also been facing challenges in its other key markets such as Europe and other regions in Asia, lately. It could be why analysts expect Ford’s revenue to fall in 4Q16.

Among other mainstream automakers (XLY), General Motors (GM), Fiat Chrysler (FCAU), and Toyota (TM) also make the majority of their revenues from the US market.

Peer comparison

Analysts’ revenue estimates for Ford’s direct competitor General Motors suggest an increase in its revenues. Analysts estimate that General Motors’ 4Q16 revenues will be $41.5 billion—up 4.6% compared to its revenues in 4Q15.

In the next part, we’ll discuss what analysts expect for Ford’s 4Q16 margins and profitability.

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