Ford Motor Expected to Post Lower 3Q Profit, Revenue — Earnings Preview

What happened

Ford Motor will report third-quarter results Wednesday afternoon. Analysts expect net income of $1.39 billion, down from $2.45 billion a year earlier, adjusted earnings of 41 cents a share and revenue of $49.08 billion, down from $50.53 billion.

Confirmed

Global impact / market context

Lower expected profit and revenue point to weaker earnings power, which matters because Ford already plans about $19.5 billion in charges from pulling back on electric vehicles, and that cost can reduce cash available for future models and returns to investors.

Analyst inference

Ford shares recently rose 1.3% to $11.73 but are down 11% this year, showing investors remain cautious. Analysts are focused on whether large SUVs and F-Series trucks recover while rival General Motors shows earnings growth and reliable execution.

Analyst inference

What to watch

1. Ford reported a 6.6% decline in third-quarter vehicle sales, which it blamed on phasing out the Escape and Lincoln Corsair models; adjusting for those discontinued models, sales volumes would have been flat. Confirmed
2. Watch whether the F-Series truck recovery proves strong enough to offset steep electric vehicle sales declines in July and August, because truck revenue supports profit per sale and overall cash generation. Analyst inference
3. Ford has said it expects around $19.5 billion in charges from retrenching on its electric vehicle business, which means investors should watch for updates on the upcoming electric truck, the Ford Fathom, and any change to that cost plan. Proposed

Evidence

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