Ford Stock Earnings Preview: You’ll Be Crying if You’re Not Buying

Stocks to buy

While Ford (NYSE:F) is a worthy contender in the electric vehicle industry, it still has to contend with Tesla (NASDAQ:TSLA). Yet, Ford stock investors can relax and stay in the trade. Ford is taking prompt action to stay competitive, and the iconic automaker should be able to reel in some reluctant EV buyers.

Furthermore, there’s an imminent event that will give Ford a chance to surprise the skeptics and short sellers. The expectations aren’t particularly high – but then, that’s exactly why Ford can pass with flying colors.

Ford Lures Tesla Owners With Cash Incentive

So, what is Ford doing to bring prospective EV buyers into the fold? For one thing, the company reduced the starting prices of some of its F-150 Lightning “trims” (i.e., model versions) by as much as $5,500.

At a $55,000 starting price, the base-model F-150 Lightning Pro trim’s price is unchanged. In a time when car prices seem to just keep going up, however, an unchanged price isn’t the worst possible thing.

Meanwhile, Ford is reducing the starting price of the F-150 Lightning XLT trim by $2,000 to around $63,000, as well as the Flash trim by a whopping $5,500 to roughly $68,000. The starting price of the Lariat extended range model will be cut by $2,500 to around $77,000.

Also, remember these F-150 Lightning series models qualify for a $7,500 federal U.S. tax credit because they’re priced below the $80,000 cutoff level. So, Tesla had better watch its back, as Ford is unafraid to compete for U.S. EV-market share.

Not only that, but Ford is introducing an additional $1,500 incentive for new F-150 Lightning and Mustang Mach-E electric SUV buyers who currently own or lease a Tesla vehicle. Now, that’s a sure sign that Ford is ready to rumble and aiming directly at Tesla.

Expectations Aren’t High, but That’s Good News for Ford

Are you ready to mark your calendar? Ford is expected to publish its first quarter financial results on Wednesday, April 24.

Since Ford is still reeling from autoworkers’ strikes and still has to deal with high interest rates, there isn’t a strong sense of optimism on Wall Street. Contrarian investors should view the muted expectations as a good thing, though.

I recommend buying Ford stock before the earnings event. The analysts’ consensus estimate calls for Ford to have generated revenue of $40.64 billion in Q1 of 2024. That’s only up 4% year over year, not an ultra ambitious forecast.

Wall Street expects Ford will have earned 42 cents per share. That would be one-third less than the 63 cents per share that Ford earned in the year-earlier quarter.

Thus, the experts are bracing for substantial year-on-year bottom-line deterioration. This sounds like a prime setup for an earnings beat if Ford can deliver not-as-bad-as-expected results.

Ford Stock: Are You Ready for a Wednesday Wake-up Call?

With price incentives, Ford is taking decisive action to entice more prospective EV buyers. Ford might steal some of Tesla’s market share this year.

Along with that, investors should consider the muted expectations as Ford gears up for an important earnings event. Consequently, now’s the time to purchase a handful of Ford stock shares and prepare for a wonderful Wednesday.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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