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Ford (F) Set To Report Q1 Earnings: What's in the Cards?

Ford Motor Co. F is set to report first-quarter 2018 results on Apr 25, after market closes.

Last quarter, Ford missed estimates by 7.1%. However, the automaker managed to beat estimates in three of the trailing four quarters, delivering an average positive surprise of 16.3%.

The long-term earnings-per-share growth (three-five years) for the company is currently pegged at 10.7%.

In the past six months, shares of Ford have outperformed the industry it belongs to. Over this time, shares of the company lost 8.8%, whereas the industry plunged 12.5%.

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

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Factors Influencing This Quarter

In March 2018, Ford reported 3.5% rise in year-over-year sales to 244,306 vehicles, boosted by crossover and truck sales, with the respective gains of 7.5% and 6.7%. However, the company’s passenger cars witnessed a sales decline of 8.1%.

Further, the company is receiving an encouraging customer response for its F-Series trucks, which contributed $4 billion to the recently-reported monthly sales.

However, in February, Ford reported a 6.9% year-over-year decline in U.S. sales.

For first-quarter 2018, the Zacks Consensus Estimate for automotive segment revenues (GAAP basis) is $37 billion, lower than the fourth-quarter 2017 figure of $38.5 billion.

The Zacks Consensus Estimate for wholesale units – total automotive sold -- is 1,692, lower than the prior-quarter figure of 1,749.

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 -4.88% as the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 39 cents and 41 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 #3.

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 stocks worth considering from the same space, with the right combination of elements to outpace earnings estimates this time around:

BorgWarner Inc. BWA has an Earnings ESP of +1.33% and a Zacks Rank #2. Its first-quarter 2018 results are expected to be released on Apr 26. You can see the complete list of today’s Zacks #1 Rank stocks here.

Autoliv, Inc. ALV has an Earnings ESP of +1.74% and has a Zacks Rank of 3. It is expected to report first-quarter 2018 results on Apr 27.

Cummins Inc. CMI has an Earnings ESP of +0.49% and is a #2 Ranked player. Its first-quarter 2018 results are slated to be announced on May 1.

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Ford Motor Company (F) : Free Stock Analysis Report
 
BorgWarner Inc. (BWA) : Free Stock Analysis Report
 
Autoliv, Inc. (ALV) : Free Stock Analysis Report
 
Cummins Inc. (CMI) : Free Stock Analysis Report
 
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