To The Moon

$Ford(F)$ will be reporting their second-quarter earnings on Wednesday (24 July) after market close. Ford stock price have been down 0.18% over the past year, but up 14.31%% YTD. Ford continue to fall on Tuesday (23 July).

This follow $General Motors(GM)$ stock’s decline after GM Q2 earnings report that indicate delay of its 2024 Buick EV, and postponement of its EV pickup plant opening to 2026.

This should give us an idea of how Ford would be navigating their EV production. Market is expecting a 68 cents in EPS and $44 billion in revenues as Ford reports after market hours.

Record Hybrid Sales, Weak F-150 Sales For Ford

Ford sold 536,050 vehicles in Q2, up 0.8% as compared to Q2 sales estimate of 551,527 vehicles, up 4.5% year over year.

Ford's sales rose 3.6% in the first six months of 2024 to more than 1 million units, with gains across trucks, SUVs and cars.

In Q2, sales of Ford vehicles with internal combustion engines tumbled 5%. They slid 1.4% in the first half of 2024, dragged lower by the F-series trucks.

Sales of EVs vaulted 61% in Q2 to 23,957 , led by the Mustang Mach-E, Ford's Model Y rival. Sales of hybrid vehicles jumped 56% to a record 53,822, led by the Maverick midsize truck

What we need to look at for Ford would be the non-EV, as similar to GM, Ford's EV sales are a small but growing part of its business, at 4% of total sales in the first half of 2024.

Ford Motors (F) Analyst Price Target Forecast

Based on 13 Wall Street analysts offering 12 month price targets for Ford Motor in the last 3 months. The average price target is $14.82 with a high forecast of $18.00 and a low forecast of $10.00. The average price target represents a 7.16% change from the last price of $13.83.

We might see very little change to the price movement, as Ford revenue might be affected by the Q2 sales number. But investors would still stay with this stock for the dividend which is quite significant.

Ford Motors (F) More Than 15% Returns On Stock Price

With a more than 5% dividend yield, the about 15% returns year-to-date on its stock price sound reasonable, but we could not expect much higher price movement from Ford.

I am expecting Ford to work on their EV strategy as there have been interest for their EV vehicles. Hope they can capture on this new market.

But we might not see significant contribution from their EV business in the upcoming quarterly earning report.

Technical Indicator (MACD and KDJ) - Potential Downside

Looking at the technical after the effect from GM earnings, Ford is showing potential downside movement on its stock price, this might mean that the low sales number for Q2 could have an effect on the quarterly earnings.

So I would think it is better to monitor the price action and see how Ford investors are feeling towards the upcoming earnings.

Summary

Ford have a similar model in terms of internal combustion engines and EV, though Ford have more than 50% sales in EV, but that only formed 4% of its overall sales. There have been growing interest, so we might be able to see a higher percentage.

With the higher percentage, that might make significant contribution to revenue. I am expecting a lower revenue reported, hence there might be some price volatility in the stock price trading.

Appreciate if you could share your thoughts in the comment section whether you think Ford could produce revenue that beat estimate?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.