Back to top

Image: Bigstock

Ford Motor (F) Set to Report Q3 Earnings: What's in Store?

Read MoreHide Full Article

Ford Motor Co. (F - Free Report) is set to report third-quarter 2017 results on Oct 26 before the market opens.

Last quarter, Ford beat estimates by 27.3%. The automaker managed to beat earnings in three of the trailing four quarters, delivering an average positive surprise of 14.9%.

The long-term earnings per share growth (three-five years) for the company are currently pegged at 12.3%.

Ford’ shares have lost 0.7% year to date, underperforming the 25.9% rally of the industry it belongs to.

Let’s see how things have shaped up for the upcoming announcement.

Ford Motor Company Price and EPS Surprise


Factors Influencing This Quarter

Ford expects 2017 adjusted EPS to be in the range of $1.65-$1.85 per share. Moreover, the company expects adjusted effective tax rate to be around 15%, which is considerably more favorable than the prior guidance.

Ford’s vehicle unit sales in the United States declined 2.1% year over year in August 2017. In July 2017, Ford’s US sales too were down 7.5% on a year-over-year basis. However, it rose 8.7% in September.

Earnings Whispers

Our proven model does not conclusively show an earnings beat for Ford this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below.

Zacks ESP: Ford’s Earnings ESP is -5.69% because the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 29 cents and 31 cents, respectively.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Ford carries a Zacks Rank #4 (Sell).

We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

Here are a few other stocks in the auto industry you may consider as our model shows that they have the right combination of elements to post an earnings beat this quarter.

Dorman Products, Inc. (DORM - Free Report) has an earnings ESP of +3.05% and a Zacks Rank #3. The company is expected to report third-quarter 2017 financial results on Oct 27. You can see the complete list of today’s Zacks #1 Rank stocks here.

Horizon Global Corporation has an earnings ESP of +5.82% and a Zacks Rank #3. The company’s third-quarter 2017 results are expected to release on Oct 31.

Magna International Inc. (MGA - Free Report) has an earnings ESP of +1.91% and a Zacks Rank #2. The company’s third-quarter 2017 financial results are expected to release on Nov 9.

Today’s Stocks from Zacks’ Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

 


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Ford Motor Company (F) - free report >>

Magna International Inc. (MGA) - free report >>

Dorman Products, Inc. (DORM) - free report >>

Published in