Why Ford Stock Inched Up after Its 3Q17 Results Announcement

Jitendra Parashar - Author

Oct. 30 2017, Updated 7:36 a.m. ET

Ford’s 3Q17 report

Ford Motor Company (F), the second-largest US automaker, announced its 3Q17 results on October 26, 2017. In 3Q17, Ford’s adjusted EPS (earnings per share) stood at $0.43, about 65.4% higher than the company’s adjusted EPS of $0.26 in 3Q16.

Ford’s EPS was also significantly better than Wall Street analysts’ estimate of $0.32 for 3Q17. Let’s take a closer look at how Wall Street reacted to Ford’s solid earnings.

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Ford stock inched up

On the day of its 3Q17 earnings release, Ford stock witnessed bullish movement and closed at $12.27. This was about 1.9% higher than its previous session’s closing price. Despite shrinking year-over-year global sales volume, a significant improvement in the company’s profit margins and improved US retail market share could be the primary reason for this optimism on Wall Street.

In January 2017, Ford highlighted the risks and challenges it might face during 2017 and gave dismal guidance. During its 3Q17 earnings event, the company revised its fiscal 2017 pretax profit guidance upward to more than $2.0 billion.

In 3Q17, the broader market has remained positive, and the S&P 500 benchmark (SPY) has risen 4.0%. Investors’ high expectations from Ford’s 3Q17 earnings also drove its stock 7.0% higher during the third quarter.

Automakers (IYK) General Motors (GM), Fiat Chrysler (FCAU), and Toyota (TM) rose 15.6%, 69.2%, and 13.5%, respectively, in 3Q17.

Series preview

In this series, we’ll explore Ford’s 3Q17 revenues and profitability and look at the factors rgar drove them. We’ll take a closer look at some key highlights of its 3Q17 results.

Let’s begin by looking at Ford’s 3Q17 performance in its largest market—North America.


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