Ford Motor (F) plans to report for the second quarter late Thursday and some analysts on Wall Street expect higher guidance after rival General Motors (GM) hiked its outlook. Ford stock rebounded from a key level Wednesday as it works on a buy point.
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The Ford earnings report should include updates on the costly shift to electric vehicles. The auto giant saw EV losses swell in Q1 and cut Mach-E prices in Q2 to stimulate sales amid a price war.
On Wednesday, Volkswagen (VWAGY) said it will jointly develop electric cars with XPeng Motors (XPEV) and invest $700 million for a 5% stake in the Chinese EV startup. XPeng stock rocketed 26%.
Seven global automakers, including GM, also announced an EV charging network, challenging market leader Tesla (TSLA).
Ford Earnings
Estimates: Analysts, on average, expect Ford earnings to decline 20% to 54 cents per share, according to FactSet. Revenue is seen rising 7%, year over year, to $43.168 billion.
Results: Check back early Thursday.
Outlook: Wall Street sees Ford earnings for the full year falling 2% to $1.84 per share, FactSet shows.
For 2023, Ford has guided adjusted EBIT of $9 billion-$11 billion and adjusted free cash flow of about $6 billion.
Ford Stock
In stock market trading Wednesday, Ford stock gained 0.7% to 13.67, rebounding from the 50-day moving average. Shares of the auto giant rallied into earnings, before pulling back to the 50-day line.
Ford stock eyes a 15.42 buy point from a cup-with-handle base that formed over many months, the IBD MarketSmith chart shows.
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EV Transition
For Q2, Ford has already disclosed that it sold 531,662 new vehicles in the U.S.
Out of that total, 14,843 were battery electric vehicles, amid a plant retooling and inventory issues.
Ford, like other established automakers, is transitioning to electric vehicles.
It recently slashed Lightning prices citing lower battery costs, though EV competition is fierce.
In May, the automaker also cut prices for its Mustang Mach-E SUV for the second time in four months, after Tesla triggered an industry price war.
And GM says its upcoming Silverado electric pickup truck will beat Ford’s Lightning with up to 40% more miles of range.
Established automakers are betting that the bold and costly shift to electric cars will eventually pay off.
Year to date, Ford stock is up 17.2% vs. a 115.7% jump for Tesla shares.
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