Ford’s recent stock performance
In the first part of this series, we looked at Ford (F) stock and how it’s trading in positive territory so far in January. The stock has underperformed the S&P 500 Index (SPY) (SPX-INDEX) but has outperformed many of its peers (IYK), including General Motors (GM), Fiat Chrysler (FCAU), and Tesla (TSLA) in 4Q17. Ford has risen 4.3%, and GM has risen 1.5%. In contrast, FCAU and TSLA have fallen 0.4% and 8.7%, respectively, in the last quarter. Now let’s find out what to expect from Ford in its upcoming 4Q17 earnings results.
Existing trend in earnings
In 3Q17, Ford reported adjusted EPS (earnings per share) of $0.43, which was 65.4% higher than $0.26 in 3Q16. Its earnings were also better than Wall Street analysts’ EPS estimate of $0.32 for 3Q17.
On the day of Ford’s third-quarter earnings release, the stock rose 1.9%. Despite a fall in the company’s global sales volume, its higher EPS and improved profits seemed to keep investor optimism alive.
Estimates for 4Q17 EPS
Analysts are expecting Ford to report positive earnings growth in the fourth quarter. According to estimates, Ford is expected to report EPS of $0.45 in 4Q17. That would be 50% higher than its adjusted EPS of $0.30 in the corresponding quarter of the previous year.
Its positive US sales growth in 4Q17 and the strength of its F-Series sales could be two main reasons for analysts’ high expectations.
In the next part, we’ll see what analysts are estimating for Ford’s 4Q17 revenues.