Ford Earnings Preview: Expected Drop in EPS and Revenue

Ford's upcoming earnings report on May 5, 2025, anticipates a significant decline in EPS and revenue, raising concerns among investors. The latest data indicates challenges against a backdrop of rising competition from GM.

Date: 25-04-2025

AI Rating: 4

Ford Motor Company's Earnings Overview
Ford Motor (NYSE:F) is gearing up to announce its earnings on May 5, 2025, with consensus expectations projecting earnings per share (EPS) at just $0.01, a notable decrease from $0.49 in the same quarter last year. This dip signifies a concerning trend for Ford's profitability, especially when compared to General Motors (GM), which just reported a 17% growth in U.S. sales for Q1.

Additionally, Ford is expected to report revenues of about $35.3 billion, down 11.6% from a year ago, showcasing a decline in sales and operational challenges. While there has been a commendable 25% increase in sales for key pickup truck models, the overall decline in vehicle deliveries by 1.3% year-over-year can be attributed to discontinuation of certain models and sales timing issues, indicating that despite some strengths, Ford is struggling to maintain market share in a competitive landscape.

Moreover, Ford's current net income stands at $5.9 billion, alongside $185 billion in revenue over the last twelve months, suggesting that despite operational profitability with an operational profit of $5.2 billion, the upcoming earnings may not instill confidence among investors. The company’s ability to sustain profitability might be hindered by reduced vehicle sales, especially with statistics indicating that positive post-earnings returns have declined to 33% over the past three years.

Ford's stock reaction provides mixed signals, as historical data shows that only 45% of the time did investors experience positive one-day returns following earnings, diminishing further in recent years. As the earnings date approaches, investor sentiment may lean towards caution, especially given the industry competition and declining metrics, which could negatively impact Ford's stock performance in the short term.

Stocks: F