Why These Ford Analysts Are Concerned About Dearborn's Outlook
- “Ford now expects commodity headwinds of $4 billion year-over-year vs. $1.5-2 billion prior. Ford largely expecting pricing to offset these incremental costs,” Langan wrote in a note.
- “While North America was weak in Q1, it is expected to recover as F-Series supply issues have been addressed, and there are 53 thousand partially assembled vehicles in inventory waiting chips,” he added.
On Wednesday, April 27, Ford Motor Company (F) reported first-quarter adjusted earnings of 38 cents per share, beating the consensus estimate of 29 cents per share. The company also reiterated fiscal 2022 EBIT guidance for between $11.5 billion and $12.5 billion and adjusted free cash flows between $5.5 billion and $6.5 billion, despite higher commodity costs.
RBC Capital Markets on Ford Motor Company
Joseph Spak maintained a Sector Perform rating and price target of $18. “We had been expecting a need to guide down as costs were rising,” Spak said in a note.
Although Ford “hit (lowered) Q1'22 consensus expectations” and reiterated guidance, this was driven mainly by higher pricing to offset increased costs, the analyst mentioned. He added, however, that this “may not allow F to catch a bid as it is price sustainability that is the concern.”
Wells Fargo on Ford Motor Company
Colin Langan reiterated an Overweight rating for the company while reducing the price target from $25 to $24. “Ford now expects commodity headwinds of $4 billion year-over-year vs. $1.5-2 billion prior. Ford largely expecting pricing to offset these incremental costs,” Langan wrote in a note.
“While North America was weak in Q1, it is expected to recover as F-Series supply issues have been addressed, and there are 53 thousand partially assembled vehicles in inventory waiting chips,” he added.
Ford Price Action
Shares of Ford lost 3.28% to close Friday, April 29 at $14.16.
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