Why Ford’s 3Q17 Revenues Could Continue to Be Stagnant



Recent trend in Ford’s revenues

In 2Q17, Ford Motor (F) reported revenues of $39.5 billion, up 0.9% from its revenues in the corresponding quarter of 2016. The company’s second-quarter revenues were also higher than analysts’ revenue estimates of $37.1 billion for 1Q17. However, Ford Motor’s weaker US sales in 2Q17 continued to disappoint investors for the second consecutive quarter.

Now, let’s take a look at what analysts are estimating for Ford’s 3Q17 revenues.

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Ford’s 3Q17 revenues estimates

Analysts estimate Ford’s third-quarter revenues to be firm at $32.8 billion this year, about 1.5% lower than its revenues of $33.3 billion for the same quarter of 2016.

Apart from analysts’ stock recommendations, investors should also pay attention to these revenue estimates, as they may reflect market expectations from the company.

In 2016, Ford faced challenges in some of its international markets including Europe and other regions of Asia. While the company’s performance in the European market improved in 4Q16 and 1Q17, it disappointed again in 2Q17. Low expectations from Ford’s European and other international segments could be one of the key reasons why analysts are estimating Ford’s revenue to be stagnant in the third quarter.

Mainstream automakers (XLY) like Ford, General Motors (GM), Fiat Chrysler (FCAU), and Toyota (TM) generate the majority of their revenues from the North American auto market.

Continue to the next part where we’ll find out what analysts are estimating for Ford’s 3Q17 profit margins.


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