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Ford (F) Q3 Earnings Decline Y/Y, Shares Fall

Ford Motor Co.F is a global automotive, financial services, and mobility company. The company's product line boasts of heavyweights such as the legendary Ford Mustang and the F-Series truck, which has been the highest-selling vehicle in the U.S. for the last 34 years. It also owns the luxury vehicle brand, Lincoln.

Ford is gaining from its product launches, global expansion, efficient capital deployment and success of the One Ford plan. The company is renewing the majority of its product line-up and has planned several vehicle launches under the One Ford plan, which is helping boost sales.

However, weakness in South America, frequent product recalls and rising structural expenses are concerns.

As a result, investors have been eagerly awaiting Ford's latest earnings report. Let's take a quick look at this Michigan-based automobile giant's third-quarter release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Ford for the third quarter have been falling the past 30 days. However, the automaker has beaten the Zacks Consensus Estimate in 2 of the trailing 4 quarters and missed in one quarter, with an average beat of around 15.8%.

FORD MOTOR CO Price and EPS Surprise

FORD MOTOR CO Price and EPS Surprise | FORD MOTOR CO Quote

Zacks Rank

Ford currently has a Zacks Rank #5 (Strong Sell), but that could change following its earnings report which was just released. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings Beat Estimates

Ford raked in adjusted earnings of 26 cents per share that comfortably surpassed the Zacks Consensus Estimate of 21 cents. However, adjusted earnings were 26 cents lower than the year-ago quarter.

Revenues Surpass Estimates

Ford logged Automotive revenues of $33.3 billion, surpassing the Zacks Consensus Estimate of $32.02 billion. Revenues were $2.5 billion lower than a year-ago.

Key Stats/Developments to Note

Ford reported a 66,000 unit decrease in wholesale volumes to 1.53 million in the third quarter.

The company reaffirmed its 2016 pre-tax profit guidance of around $10.2 billion. This means that the pre-tax results are projected to decline year-over-year.

Market Reaction

Ford's shares have fallen 1.01% in pre-market trading so far following the release. Clearly, the initial reaction to the release is negative.

Check back later for our full write up on Ford's earnings report!

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FORD MOTOR CO (F): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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