Ford prepares for earnings report amid declining profits
- Ford Motor Company is set to release its earnings report on July 30, 2025, with earnings per share predicted to drop to $0.33 from $0.47 last year.
- The company recorded a 14.2% increase in Q2 vehicle sales, primarily driven by strong demand for its pickup trucks.
- Despite favorable sales numbers, new tariffs may pose risks to profitability, highlighting the need for investors to watch the earnings announcement closely.
In the United States, Ford Motor Company has disclosed that it will release its earnings report on July 30, 2025. Analyst consensus forecasts an earning per share of approximately $0.33, which is a decrease from $0.47 per share reported in the same quarter of the previous year. Additionally, revenues are anticipated to be around $43.93 billion, indicating a 2% decline compared to the previous year. However, Ford's vehicle delivery figures for Q2 showed a robust increase in sales, with a notable 14.2% rise year-over-year, resulting in sales of 612,095 units. This growth is primarily attributed to strong demand for pickup trucks, particularly the F-Series, Ranger, and Maverick models, which have collectively seen a 15% increase in sales. F-Series sales, specifically, rose by 11.5%, marking the most successful Q2 since 2019. Forecasts suggest that the increased proportion of pickup sales, which generally offer higher profit margins than sedans, could enhance Ford's overall profit margins. Nevertheless, challenges remain for Ford as the new tariffs on automobiles and automotive components, established by the previous U.S. administration, could impact costs and profitability during the upcoming reporting quarter. Competitor General Motors (GM) has already reported a significant earnings hit due to these tariffs, indicating an impact of around $1.1 billion on its Q2 earnings. Yet, Ford may have a competitive edge, with about 80% of its U.S. sales being generated from vehicles manufactured domestically. Presently, Ford's market capitalization stands at $44 billion, with twelve-month revenues reaching $183 billion alongside a recorded operational profitability of $4.3 billion in operating profits and a net income of $5.0 billion. The earnings report outcome will be crucial in determining the trajectory of Ford's stock, and historical trends may offer insights for traders. Over the last five years, Ford’s stock reactions post-earnings have shown a 50% chance of positive returns, with a median return of 2.6% for positive outcomes and -8.0% for negative outcomes. Hence, traders could benefit from analyzing these historical results as they prepare for the upcoming earnings announcement.