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Ford Motor Company (F), headquartered in Dearborn, Michigan, is a leading automobile company that designs, develops, markets, and services a range of Ford trucks, SUVs, commercial vans, cars, and Lincoln luxury vehicles. Valued at $38.8 billion by market cap, the company also provides vehicle-related financing, leasing, and insurance. The auto giant is expected to announce its fiscal fourth-quarter earnings for 2024 after the market closes on Wednesday, Feb. 5.
Ahead of the event, analysts expect F to report a profit of $0.34 per share on a diluted basis, up 17.2% from $0.29 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect F to report EPS of $1.77, down 11.9% from $2.01 in fiscal 2023. Its EPS is expected to decline 3.4% year over year to $1.71 in fiscal 2025.
F stock has significantly underperformed the S&P 500’s ($SPX) 24.2% gains over the past 52 weeks, with shares down 18.6% during this period. Similarly, it considerably underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY)27% gains over the same time frame.
Ford’s underperformance stems from slowing growth, waning demand, and increasing competition. The company faces challenges from rising inventories, higher warranty costs, inflationary pressures, and uncertainty in its European business. Additionally, Ford's EV strategy is under pressure from intense competition and high development costs.
On Oct. 28, F shares closed up more than 2% after reporting its Q3 results. Its adjusted EPS of $0.49 surpassed Wall Street expectations of $0.47. The company’s revenue was $46.2 billion, beating Wall Street forecasts of $42.3 billion.
Analysts’ consensus opinion on F stock is cautious, with a “Hold” rating overall. Out of 19 analysts covering the stock, four advise a “Strong Buy” rating, 10 give a “Hold,” one suggests a “Moderate Sell,” and four recommend a “Strong Sell.” F’s average analyst price target is $11.24, indicating a potential upside of 15.4% from the current levels.
