Leading automotive company Ford Motor Co F will report fourth-quarter financial results after market close on Tuesday, Feb. 6, 2024.
Here's a look at the key estimates from analysts for the fourth quarter, what analysts are saying and key items for investors to watch.
Earnings Estimates: Analysts expect Ford to report fourth-quarter revenue of $40.142 billion, according to estimates from Benzinga Pro.
The revenue estimate would mark a decline from the previous year's $44.00 billion reported in the fourth quarter.
Ford has beaten revenue estimates from analysts in six of the last seven quarters.
Analysts expect Ford to report earnings per share of 13 cents for the fourth quarter, which would be a decline from the comparable 51 cents per share in last year's fourth quarter. Ford has a mixed history with earnings per share estimates in recent quarters, beating estimates three times, missing estimates three times in six of the last seven quarters.
Ford withdrew its guidance during its third-quarter financial results, citing the unknown impact of the UAW strike.
Related Link: Ford Deal With UAW: How Do Pay Raises Compare To Hollywood Writers, Other Recent Union Wins?
What Analysts Are Saying: Analysts have been less bullish on Ford in recent months heading into the fourth quarter earnings print.
UBS analyst Joseph Spak recently downgraded shares of Ford from Buy to Neutral.
The analyst, who had a $12 price target on Ford, said there was a limited upside for Ford in 2024 and 2025 and investors could do better with rival General Motors Co GM.
Spak said Ford's Gen 2 EVs won't launch until 2025 or 2026, pushing a future catalyst further down the pipeline.
The analyst also saw labor adding billions in costs to Ford as a potential headwind for the automotive company as a result of the UAW strike.
Morgan Stanley analyst Adam Jonas said recently that Ford and General Motors face challenges from investments they have made.
"We are concerned over the future of the US auto industry — even more so than during the Great Financial Crisis of 2008/2009," Jonas said.
The analyst said rising capital expenditures and increased R&D spending by Ford for its electric vehicles could be headwinds for Ford and the U.S. auto industry.
"As we look ahead to 2024, the industry stands at a crossroads with investors wondering: what actions will management teams be willing to take to adjust the strategies to a changing economic and competitive landscape?"
Here's a look at other recent analyst action on Ford stock.
Jan. 24: Redburn Atlantic initiated Ford with Sell rating, $10 price target
Dec. 4: HSBC initiates Ford with Hold rating, $11.30 price target
Nov. 1: Barclays upgrades Ford from Equal-weight to Overweight, $14 price target
Key Items to Watch: The impact of the UAW strikes on Ford's finances continues to be a big headwind for the company and commentary on the issue could make shares volatile, while also putting the potential ramifications further in the rear-view mirror.
The company's electric vehicles will likely be another item targeted by analysts and investors.
Ford reported January sales of 4,674 electric vehicles, which were down 11% year-over-year. The company saw fewer Mustang MachE units sold and F-150 Lightning pick-up trucks. Ford did report a 217% year-over-year increase in E-transit vans during the month of January.
Through the first nine-months of the year, Ford's electric vehicle segment, known as Model e, reported wholesale unit sales of 82,000, which was up 23% year-over-year. The unit a year-to-date EBIT loss of $3.1 billion through the first nine months.
The latest January figure could suggest a slow down in electric vehicle demand from the company.
"Ford is able to balance production of gas, hybrid and electric vehicles to match the speed of EV adoption in a way that others can't," Ford CFO John Lawler previously said during Ford's third-quarter results.
F Price Action: Ford shares are down 4.53% to $11.59 on Monday versus a 52-week trading range of $9.63 to $15.42.
Read Next: Ford Electric Delivery Vehicles Shown Off By USPS — Postal Fleet To Comprise Of 66,000 EVs By 2028
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