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Ford (F) to Post Q4 Earnings: What's in Store for the Stock?
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Ford (F - Free Report) is slated to release fourth-quarter 2020 results on Feb 4, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at a loss of 7 cents on revenues of $32.89 billion.
The U.S auto biggie delivered better-than-expected earnings in the last reported quarter on higher-than-anticipated automotive sales in North America and Europe.
Over the trailing four quarters, the company surpassed estimates on two occasions for as many misses, the average surprise being 27.01%. This is depicted in the graph below:
Investors project an earnings beat for Ford this time around. Reassuringly, our model also indicates the same.
Trend in Estimate Revisions
The Zacks Consensus Estimate for Ford’s fourth-quarter loss per share has been narrowed by three cents in the past 30 days. However, the bottom line compares unfavorably with the year-ago quarter’s earnings of 12 cents per share, indicating a year-over-year slump of 158.3%. Moreover, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decline of 10.3%.
Earnings Whispers
Our proven model predicts an earnings beat for Ford this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This has been elaborated below.
Earnings ESP: Ford has an Earnings ESP of +12.88%. This is because the Most Accurate Estimate for loss is pegged one cent lower than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
With the auto sector steadily recovering from the pandemic-induced disruptions, Ford’s fourth-quarter top and bottom lines are likely to have benefited amid this upbeat scenario.
Per the Zacks Consensus Estimate, Ford’s wholesale volumes for the to-be-reported quarter are pegged at 1,223,000 units, suggesting sequential 3.8% growth. Fourth-quarter wholesale volumes are expected to have risen sequentially in Europe, South America and China, partly offset by a projected decline in North America.
The consensus mark for wholesale volumes in the European and the South American region is 318,000 and 82,000 units, calling for a quarter-on-quarter gain of 33% and 70.8%, respectively. Meanwhile, the Zacks Consensus Estimate for wholesale volumes in the North American region is pinned at 573,000 units, down from the prior-quarter level of 651,000.
The Zacks Consensus Estimate for quarterly revenues for the North American region, the most significant market for the company, is pegged at $21,997 million, indicating a decline from the year-ago figure of $25,300 million as well as the prior-quarter figure of $25,300 million.
Nonetheless, the consensus mark for December-end quarter revenues from Ford’s European and South American markets indicates yearly as well as a sequential rise.
For the quarter in discussion, the Zacks Consensus Estimate for revenues from the European market is pegged at $7,248 million, suggesting a jump from the year-ago reported figure of $7,100 million and prior-quarter figure of $5,700 million. Moreover, the Zacks Consensus Estimate for revenues from the South American market is pinned at $1,107 million, calling for a surge from both the year-ago reported figure of $1,000 million and the prior-quarter figure of $600 million.
Further, Ford seems to have benefited from the rising vehicle sales in the world’s largest car market i.e. China, wherein it commands a huge presence. This is likely to have offered some respite to the automaker’s top line in the fourth quarter. Total vehicle sales in the Chinese market summed 190,916 vehicles during quarter under review, up 30.3% year on year and 16.2% sequentially.
Additionally, Ford’s focus on cost-containment efforts is likely to have aided the company’s margins during the quarter in discussion.
Other Stocks to Consider
Along with Ford, here are a few other stocks worth considering, as these too have the right combination of elements to come up with an earnings beat this time around:
BorgWarner (BWA - Free Report) has an Earnings ESP of +2.94% and carries a Zacks Rank #3, currently. The company is scheduled to report quarterly numbers on Feb 11.
Allison Transmission Holdings (ALSN - Free Report) has an Earnings ESP of +7.44% and carries a Zacks Rank #3 at present. The company will announce fourth-quarter 2020 results on Feb 17.
Magna International (MGA - Free Report) has an Earnings ESP of +5.42% and currently flaunts a Zacks Rank of 1. The company is slated to release fourth-quarter numbers on Feb 19.
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Ford (F) to Post Q4 Earnings: What's in Store for the Stock?
Ford (F - Free Report) is slated to release fourth-quarter 2020 results on Feb 4, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at a loss of 7 cents on revenues of $32.89 billion.
The U.S auto biggie delivered better-than-expected earnings in the last reported quarter on higher-than-anticipated automotive sales in North America and Europe.
Over the trailing four quarters, the company surpassed estimates on two occasions for as many misses, the average surprise being 27.01%. This is depicted in the graph below:
Ford Motor Company Price and EPS Surprise
Ford Motor Company price-eps-surprise | Ford Motor Company Quote
Investors project an earnings beat for Ford this time around. Reassuringly, our model also indicates the same.
Trend in Estimate Revisions
The Zacks Consensus Estimate for Ford’s fourth-quarter loss per share has been narrowed by three cents in the past 30 days. However, the bottom line compares unfavorably with the year-ago quarter’s earnings of 12 cents per share, indicating a year-over-year slump of 158.3%. Moreover, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decline of 10.3%.
Earnings Whispers
Our proven model predicts an earnings beat for Ford this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This has been elaborated below.
Earnings ESP: Ford has an Earnings ESP of +12.88%. This is because the Most Accurate Estimate for loss is pegged one cent lower than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Ford currently flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at Play
With the auto sector steadily recovering from the pandemic-induced disruptions, Ford’s fourth-quarter top and bottom lines are likely to have benefited amid this upbeat scenario.
Per the Zacks Consensus Estimate, Ford’s wholesale volumes for the to-be-reported quarter are pegged at 1,223,000 units, suggesting sequential 3.8% growth. Fourth-quarter wholesale volumes are expected to have risen sequentially in Europe, South America and China, partly offset by a projected decline in North America.
The consensus mark for wholesale volumes in the European and the South American region is 318,000 and 82,000 units, calling for a quarter-on-quarter gain of 33% and 70.8%, respectively. Meanwhile, the Zacks Consensus Estimate for wholesale volumes in the North American region is pinned at 573,000 units, down from the prior-quarter level of 651,000.
The Zacks Consensus Estimate for quarterly revenues for the North American region, the most significant market for the company, is pegged at $21,997 million, indicating a decline from the year-ago figure of $25,300 million as well as the prior-quarter figure of $25,300 million.
Nonetheless, the consensus mark for December-end quarter revenues from Ford’s European and South American markets indicates yearly as well as a sequential rise.
For the quarter in discussion, the Zacks Consensus Estimate for revenues from the European market is pegged at $7,248 million, suggesting a jump from the year-ago reported figure of $7,100 million and prior-quarter figure of $5,700 million. Moreover, the Zacks Consensus Estimate for revenues from the South American market is pinned at $1,107 million, calling for a surge from both the year-ago reported figure of $1,000 million and the prior-quarter figure of $600 million.
Further, Ford seems to have benefited from the rising vehicle sales in the world’s largest car market i.e. China, wherein it commands a huge presence. This is likely to have offered some respite to the automaker’s top line in the fourth quarter. Total vehicle sales in the Chinese market summed 190,916 vehicles during quarter under review, up 30.3% year on year and 16.2% sequentially.
Additionally, Ford’s focus on cost-containment efforts is likely to have aided the company’s margins during the quarter in discussion.
Other Stocks to Consider
Along with Ford, here are a few other stocks worth considering, as these too have the right combination of elements to come up with an earnings beat this time around:
BorgWarner (BWA - Free Report) has an Earnings ESP of +2.94% and carries a Zacks Rank #3, currently. The company is scheduled to report quarterly numbers on Feb 11.
Allison Transmission Holdings (ALSN - Free Report) has an Earnings ESP of +7.44% and carries a Zacks Rank #3 at present. The company will announce fourth-quarter 2020 results on Feb 17.
Magna International (MGA - Free Report) has an Earnings ESP of +5.42% and currently flaunts a Zacks Rank of 1. The company is slated to release fourth-quarter numbers on Feb 19.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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