Vi använder en mängd olika cookies för att du ska få den bästa användarupplevelsen. Genom kontinuerlig användning av denna webbplats godkänner du vår användning av cookies. Du kan läsa mer om vår policy för cookies och redigera dina inställningar här eller genom att följa länken längst ner på alla sidor på vår webbplats.
Ford will announce its numbers at 12pm on Friday 24 October. The automaker’s share price collapsed at the end of September when the company warned that full-year profits will be in the region of $6 billion, which is considerably lower than the previous guidance of somewhere in between $7 billion and $8 billion.
The America’s business bore the brunt of the blame; the South American unit registered a loss of $900 million and the recall of vehicles, mostly in North America, is to set the business back around $1 billion more. Operations in Russia made a loss of $300 million. Its Russian business was slipping even before tensions arose over Ukraine, and now falling demand and a weakening rouble are compounding the problem. Ford’s European business is expected to back to profit in 2015.
To cushion the blow of the profit warning, the Detroit-headquartered company stated that revenue from its North America business will increase by 20% by 2020, although profit margins would decline to a high single digit.
In the wake of a profit warning one would expect a jump in the number of speculators shorting the stock, but short interest actually declined by 5.7% at the end of September.
Analysts are expecting third quarter revenue to come in at $33.31 billion and an EPS of $0.19. This represents a 5.6% and a 52.5% decline from Q2 revenue and EPS.
The stock is off its recent lows of $13.26, which coincided with the spike in the VIX and the plummet in the S&P 500. Year-to-date the share price is down 7.8%, whereas General Motors has lost 22.5% over the same period, Ford’s share price hit a three-year high in July, but the profit warning last month brought it back to levels not seen since April 2013.
Equity analyst recommendations are heavily weighted on the buy side; out of the 28 ratings, 15 are buys, 12 are holds and only one is a sell. The average target price of the 28 recommendations is $17.81.
Ford is trading at $14.28, with the 200-week moving average providing support at $13.79. If Ford confirms full-year guidance will be met without additional revisions, the stock may target the 100-week MA of $15.47. If confidence is restored in the medium-term, the next level up is the 200-DMA of $16.13.