Ford (NYSE:F), a prominent player in the Automobiles industry, is set to report its Q3 2023 results on October 26, with expectations of expanded deliveries and revenues, despite ongoing challenges. The automaker is anticipated to post revenues around $40.28 billion, marking an 11% increase from the same period last year and slightly surpassing consensus estimates. This growth is attributed to robust sales in the U.S., particularly in the pickup truck segment, according to InvestingPro data.
The company's earnings, which have been profitable over the last twelve months according to InvestingPro Tips, are projected to reach $0.46 per share, ahead of consensus estimates and a significant 50% increase from Q3 last year. Interestingly, the ongoing United Auto Workers union strike isn't expected to have a material effect on these figures.
Ford reported strong Q3 sales in the U.S. despite high interest rates. A year-over-year increase of 7.7% in pickup truck sales led the charge, with total truck sales rising by 15.3%. Car sales, on the other hand, declined by about 5%, and SUV sales remained largely flat.
The automotive division of Ford is expected to benefit from cooling commodity prices and a favorable sales mix. Even though vehicle prices have seen significant increases in the past year and are expected to decline in 2023, the impact is likely to be offset by higher average selling prices for trucks, given their higher average selling prices.
Despite these positive indicators, Ford's stock performance has been lagging behind both the S&P 500 Index and the Trefis Reinforced Value portfolio since early 2017. According to the Ford Valuation Expensive Or Cheap analysis, Ford's stock is currently undervalued, trading at less than 6x 2023 consensus earnings.
InvestingPro data indicates that Ford's market cap stands at $48.83 billion, with a P/E ratio of 11.86. Over the last three months, the price has fallen significantly by 19.02%, yet the company has maintained dividend payments for 12 consecutive years, with a current dividend yield of 4.92%. This information, along with hundreds of other insightful tips and real-time metrics, is available to InvestingPro users, providing a comprehensive view of the market for informed investment decisions. For more information and access to additional tips, visit InvestingPro.
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