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Ford’s Earnings Report: What to Watch

Ford Motor Company $F is going to report fourth-quarter earnings on January 23nd, after the close bell. Ford Motor Company is a multinational producer of vehicles with the headquarter in Dearborn, Michigan. The company sells automobiles and commercial vehicles under the Ford brand. In addition to this, the company also presents the luxury-car-segment under the Lincoln brand-name. At the last earnings report, Ford’s results met the estimates with EPS of $0.29 on the revenue $33.5B. During the last four quarters, the results weren’t so constant and twice missed the estimates.

In October, the company’s management announced that tariff-related costs slashed profits by about $1 billion. In the recently reported preliminary results, Ford mentioned that it expects adjusted earnings per share of 30 cents in fourth-quarter 2018, while adjusted earnings per share of 2018 are projected to be $1.30.

Factors that might influence the upcoming report:

Ford’s sales of trucks and SUVs are increasing year-over-year. In nowadays customers are more interested in spacious and comfortable vehicles. In fact, its F-Series, Ford Expedition and Lincoln Navigator are among the few winning models in its portfolio. In the United States, the company’s sales across truck and SUV segments created records in 2018.

Further, a strong mix expanded the average transaction pricing for Ford’s vehicles. The transaction price for the company appeared $1,600 in December 2018 while an increase in the industry overall was of $470.

Despite overall sales increasing in major driving segments, this automaker’s growth revenue is declining. High costs, owing to metals tariffs, the US-China trading war and struggling business in Europe, are major problems for Ford.

Wall Street Estimates:
EPS (Average Estimate): $0.30/share
Q4 Revenue (Average Estimate): $41.8B

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