What To Expect From Ford’s Q1 2019 Results?

Ford Motors (NYSE: F), the American auto maker, is set to announce its Q1 2019 earnings on 25th April, 2019 followed by a conference call with analysts.  We expect the company to report revenue of close to $40.1 billion in Q1 2019, which would mark a decline of 4.4% on a year-on-year basis. Lower revenue is likely to be a reflection of global auto market uncertainty. Market expectation is for the company to report earnings of $0.26 per share in Q1 2019, much lower than $0.43 per share in the same period of 2018. The fall in earnings would most likely be driven by an expected fall in revenue from nearly all regions.

We have summarized our key expectations from the earnings announcement in our interactive dashboard – What Has Driven Ford’s Revenues & Expenses Over Recent Quarters, And What Can We Expect For Full-Year 2019?  In addition, here is more Consumer Discretionary data.

Key Factors That May Impact Future Performance:

China:

• China is one of the most important geographies for Ford as it can be twice the size of the US market by 2025. The growth potential of the region is high and thus can boost the overall growth of the company. In 2018, the company started its focus on making sure that there is adequate dealer profitability and they plan to add more than 10 new Ford and Lincoln products to China’s distribution network. The company has decided to give a specific focus to the region, and thus broken it into a specific unit and appointed local talent in Key management positions, the CEO being Amit Jain.

Europe:

• The Europe segment was the only silver lining in an otherwise disappointing 2018 for the company. They registered a fifth consecutive year of growth in share in the light commercial vehicle business and are expected to lead the line in the region by the end of 2019.
• Further, for Europe the company wants to focus on the redesigning of operations which is expected to lead to better pricing and margins.

Margins:

• In 2018 the revenue went up by 2% but the gross margins of the company were poor. The company aims to rectify the same this year as it concentrates on consolidating the existing business with focusing the growth in China and Europe. Overall we expect about 82 basis points of increase in the overall gross margin of the company for 2019.

Trefis has an estimate of $10.90 for Ford’s stock. Expectations of growth in China and Europe, along with better margins in the long term, are expected to improve profitability and, in turn, work as a tailwind for the company’s stock price.

What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs

For CFOs and Finance Teams | Product, R&D, and Marketing Teams

More Trefis Data

Like our charts? Explore example interactive dashboards and create your own.