|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||10.51 - 10.72|
|52 Week Range||10.14 - 13.48|
|PE Ratio (TTM)||5.47|
|Earnings Date||Jul 25, 2018|
|Forward Dividend & Yield||0.60 (5.36%)|
|1y Target Est||12.27|
Remember Ken Block's rally-spec Ford Escort RS Cosworth? Sadly, memories and some charred structures are the only things that remain of the Cossie, as the car is no more. After hitting a rock at the New England Forest Rally in Maine, Block's Group A rally car rolled over and burst into flames, which quickly consumed the Euro-spec '90s legend.
Automakers generating better profits out of China would be a big deal for investors. If BMW increases its Chinese joint-venture ownership above 50%, will it set a precedent Detroit companies can follow?
Previously, we looked at Fiat Chrysler’s (FCAU) stock performance in Q2. Investors’ high expectations for the company’s second-quarter results may have helped its stock. In this part, we’ll explore analysts’ estimates for its Q2 2018 earnings.
Italian-American auto giant Fiat Chrysler (FCAU) is slated to announce its Q2 2018 earnings on July 25. Before we review analysts’ estimates for its Q2 2018 earnings, let’s look at its stock performance in July so far.
With second-quarter earnings season in full swing, we're gearing up for reports from General Motors (GM), Ford Motor (F), and Tesla (TSLA). Yet JPMorgan's Ryan Brinkman argues that only the first two are worth buying ahead of the results. Brinkman reiterated an Outperform rating on both GM and Ford, although he thinks only the former will beat consensus estimates.
When Detroit's automakers report earnings on Wednesday, they are likely to highlight escalating tariffs and use the opportunity to warn investors of far greater pain ahead should U.S. President Donald Trump impose broader tariffs on the industry's vehicles and parts, consultants and analysts said. "The automakers really want to get that narrative out there," said Jeff Schuster, president for the Americas at consultancy LMC Automotive, who stressed it is unusual for General Motors Co (GM.N), Ford Motor Co (F.N) and Fiat Chrysler Automobiles NV (FCA) (FCHA.MI) to post quarterly earnings on the same day. "All three automakers are on the same page with tariffs," he added.
In Q1 2018, Ford’s (F) automotive EBIT fell 20% YoY (year-over-year) to $1.7 billion, and its EBIT margins contracted YoY to 4.4% from 6.0%. Ford’s profits worsened in many of its key segments due to higher steel and aluminum prices, higher structural costs, and currency headwinds driven by the British pound, Thai baht, Canadian dollar, and Argentinian peso.
The automobile sector is known to be highly capital-intensive due to huge fixed and raw material costs in the auto manufacturing business. That’s one of the key reasons that major automakers (VCR) General Motors (GM), Ford Motor (F), Toyota Motor (TM), and Fiat Chrysler Automobiles (FCAU) extensively utilize debt.
Tariff fears marched back onto Wall Street early Friday, stirring up tension and possibly overshadowing some solid earnings news in which info tech continues to lead the parade. In an interview with CNBC, President Trump threatened to unleash tariffs on $500 billion worth of Chinese goods. Just a few weeks ago, the White House slapped tariffs on a smaller amount of Chinese imports, but the market bounced back pretty quickly from weakness then.
In Q1 2018, Ford’s (F) revenue rose 7% YoY (year-over-year) to $39 billion, beating analysts’ estimate of $37.2 billion. While Ford’s US sales fell 2% YoY in the quarter, lower tax boosted its revenue. Like Ford, legacy automaker (XLY) peers General Motors (GM), Fiat Chrysler (FCAU), and Toyota (TM) generate a large portion of their revenue from North America.
Domestic automakers will suffer equally if tariffs are imposed on car imports, as a number of U.S. carmakers have their production units offshore.
A strong economy and an upbeat consumers' sentiment should have some positive influence on Ford's (F) soon-to-be-released results.
Of the 21 analysts covering Ford (F) stock, most (76%) recommend “hold,” 19% recommend “buy,” and 5% recommend “sell.” Their 12-month target price of $12.28 for Ford implies a ~13% upside to its market price of $10.87.