Ford Motor Co.F 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
Ford Motor Company Price and EPS Surprise | Ford Motor Company Quote
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 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 HZN 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 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.
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Ford Motor Company (F): Free Stock Analysis Report
Magna International, Inc. (MGA): Free Stock Analysis Report
Horizon Global Corporation (HZN): Free Stock Analysis Report
Dorman Products, Inc. (DORM): 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.
