Ford Motors Q3 2017 Earnings Preview

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Ford Motor Company (NYSE:F) is set to report earnings for the third quarter of fiscal year 2017 on October 26, 2017. While the company is being negatively impacted due to the slowdown in sales of passenger cars in the U.S., its F-series trucks have shown strong performance in August and September. (Read Ford’s August Sale Results Have A Silver Lining). (Read F-Series And Hurricanes Lead To A Strong September For Ford Motors). However, to bring its inventory of passenger cars down, the company decided to halt production at five of its North American plants for ten weeks. The affected models include Ford Fiesta, Ford Fusion compact car, and its Lincoln mid-size sedans. (Read Here’s Why Ford Motors Is Cutting Production At Its North American Plants).

Below is a summary of analyst expectations for Ford Motors’ Q3 2017 results:

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Source: Yahoo Finance

As it navigates the changes in the automotive landscape, Ford Motors is taking several steps to adapt itself to the new environment. The company recently entered into a partnership with Lyft to chalk out a clear road map and business plan for its self-driving vehicles.(Read Here’s How Ford Motors Can Benefit From Its Partnership With Lyft)

With the slowing U.S. market, Ford is focusing aggressively on other regions for growth. The company recently announced that it is exploring a partnership with the Mahindra Group in India in the areas of mobility, electrification, and product development. (Read Here’s Why Ford Motors Is Entering Into A Strategic Partnership With Mahindra Group In India).

China remains a bright spot for the company and is likely to be a growth engine for Ford in the long term. In order to penetrate deeper into the fast growing clean energy market of the region, Ford Motors entered into a partnership with Zotye Auto in China to explore a joint venture which would produce all electric vehicles sold under an indigenous brand in China. The company has also strengthened its leadership in the region by naming Jason Luo as the Chairman and CEO for Ford China. (Read A Closer Look At Ford’s China Developments).

We would be closely watching the impact of the strong performance of the F-series on Ford’s Q3 2017 results. Further, as two main regions in the U.S., Florida and Texas, recover from the recent hurricanes (Harvey and Irma), rebuilding efforts can drive automobile sales.  Experts estimate that nearly 1 million cars were destroyed in these hurricanes and a spike a demand for SUV’s and trucks is likely as rebuilding efforts start. We will be watching for the impact of these efforts on Ford’s revenues.

 

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