Ford Motor Company (NYSE:F) is all prepared to release second-quarter earnings on July 26, 2017, under new CEO Jim Hackett. Investors are looking forward to knowing about his plans to advance the automaker. Hackett has begun to make its mark. Earlier this month, he updated on the implementation of a shot clock at Ford, intended to make the firm’s decision-making procedure speedier.
Any enthusiasm about the Hackett’s arrival and CEO shake-up, however, has failed to translate into stock gains. Another problem for automaker is declining new-car sales as the last month sales in the U.S. were down 5.1% over last year.
Street analysts polled by FactSet anticipate Ford to post earnings of 43 cents per share as compared to earnings of 49 cents per share in Q2 2016. Estimize has a consensus EPS projection of 45 cents, grounded on 107 estimates.
Analysts surveyed by FactSet anticipate sales of $37.2 billion for the second quarter as against $36.9 billion in the same period, a year ago. Such revenues would be a drop from the revenue of $39.1 billion that the company recorded in the first quarter. Estimize experts are projecting sales of $38.1 billion.
Ford shares have failed to perform in line with the broader market, and in fact are trading over 6% down so far in this year. That compares with gains of almost 10% for the S&P 500 index. Shares have declined 1% in the previous three months, compared to gains of around 4% for the benchmark in the comparable period.
Weaker U.S. sales are anticipated to continue in 2H2017, and it’s a big reason why most Wall Street experts are cautious about the market. In a recent note, analysts at Goldman Sachs reported that the sector’s second-quarter report should mainly be acceptable, most shareholders are likely to stay away considering a U.S. auto cycle that has peaked.