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How Ford Stock Is Trading before Its 4Q17 Earnings Release

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Jan. 18 2018, Published 11:34 a.m. ET

Ford’s 4Q17 earnings

Ford Motor Company (F) is set to release its 4Q17 earnings on January 24, 2018. Ford continues to be the second-largest US auto company by 2017 vehicle sales volume after General Motors (GM). Before we explore what investors should expect from Ford’s upcoming earnings, let’s explore how Ford stock has fared so far in January.

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Ford stock in 2018

Since the beginning of fiscal 2018, stocks of mainstream automakers (IYK) have witnessed a bullish movement. Despite a 2% fall in total US auto sales in 2017, continued strength in US truck demand may have kept investor optimism alive.

The broader market (SPY) (SPX-INDEX) also began 2018 on a positive note, and the S&P 500 Index has risen 3.8% YTD (year-to-date) as of January 16, 2018. So far in January, Ford stock has outperformed the broader market, and so have its peers GM, Tesla (TSLA), and Toyota (TM). Ford stock has risen 4.9% YTD, whereas GM, TSLA, and Toyota have risen 7.8%, 9.2%, and 8.5%, respectively, YTD.

Investors’ high expectations for Ford’s 4Q17 earnings along with higher US sales in the final four months of 2017 could be the key reasons for the stock’s recent rise on Wall Street.

On January 16, 2018, Ford released its preliminary results for 2017 with adjusted EPS (earnings per share) of $1.78, reflecting a rise of 2% from 2016. Its actual results might not be the same as its preliminary results, which is why investors should be aware of analysts’ estimates. Ford gave a dismal adjusted EPS guidance of $1.45–$1.70 for fiscal 2018, which could hurt investor sentiments going forward.

Series preview

In this series, we’ll explore Wall Street analysts’ consensus estimates for Ford’s 4Q17 earnings and some key possible reasons for analysts’ expectations. These estimates will also cover Ford’s 4Q17 revenues and margin estimates. Later in the series, we’ll see what key announcements could be expected from Ford’s upcoming earnings.

In the next part, we’ll get a quick recap of Ford’s 3Q17 earnings and then move on to 4Q17 earnings estimates.

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