Ford Motor Company will report its third quarter 2015 financial results before the market opens on Tuesday, October 27th, and Wall Street analysts expect the earnings to beat expectations.
The expectations are based on Ford’s strong September sales results, particularly its pickup truck and crossover lineup, vehicles that continue to be favored by U.S. car buyers. The Blue Oval has seen particular success with its all-new F-150 pickup truck.
Analysts polled by FactSet expect The Blue Oval’s Q3 2015 earnings to come in at 46 cents per share, up considerably from the 24 cents a share on a year-over-year basis.
Analysts see revenue for Q3 2015 to hit $35.5 billion, up from $32.8 billion year-over-year. Ford North America is expected to make up $23.5 billion of that amount, up from $19.9 billion year-over-year. All other regions are expected to post declines in revenue, especially in Europe and South America.
Year to date 2015, Ford shares have gained 1.4 percent. By comparison, the S&P 500 index was up 0.6 percent during the same time period. Ford shares have begun to accelerate over the last few months, gaining 9.2 percent in the last three months compared to losing 0.4 percent for the S&P.
What’s more, analysts have set an average price target of $18 for Ford, which represents a 15 percent increase from Monday’s prices.
Other Notable Issues & Developments
Ford is highly dependent on its F-150 pickup truck line. The vehicle is the best-selling truck and vehicle in America and in the world.
For the 2015 model year, Ford completely overhauled (re-designed and re-engineered) the F-150. Outside of obvious exterior and interior design changes, the biggest change to the 2015 F-150 was the switch to aluminum from steel for the trucks’ body panels.
The truck launched to favorable reviews and sales have been quite healthy. As such, analysts expect Ford’s earnings to follow suit in the third quarter on strength of F-150 sales.
The rest of the Ford lineup remains desirable to consumers, meaning that the automaker’s vehicles are desirable, rather than necessitating incentives and discounts to be sold.
FoMoCo’s next challenge is Lincoln. Over the several years, the luxury brand has struggled to sell its cars, though it has found success over the last few years with its MKC and MKX crossovers. Going forward, the challenge is to turn the brand into a global luxury brand that is as strong at selling cars as it is crossovers and SUVs.
Stay tuned as we bring you coverage Ford Q3 2015 earnings tomorrow morning.