Ford Inc. is scheduled to report earnings after today’s close. The stock hit a record high around $40/share in 1999 and is currently trading near $12/share. It will be interesting to see what happened last quarter, especially with its electric vehicle (EV) unit. Tesla, a good proxy for EV demand, fell after reporting its latest quarterly results.
Earnings Preview:
The company is expected to report a gain of $0.39/share on $36.03 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $0.44/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals:
The company sports a relatively low P/E ratio of 6 which makes it attractively valued. Sales have grown by double digits in each of the past 3 quarters which is encouraging. Earnings, however, are projected to fall by -14% in 2023 compared to 2022 which is not ideal for growth investors. The company did a great job pivoting recently by offering more electric vehicles which resonates well with today’s consumer.
A Closer Look At The Technicals:
Technically, the stock has fallen sharply since its $25.87 high in January 2022. Over the last several months the stock has traded in a big trading range between $10-16/share. The bulls want to see the stock gap up and rally after reporting earnings and the bears want to see it gap down and fall.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
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