Ford Motor Co. (F) reported second-quarter financial results that beat Wall Street expectations and reinstated its full-year guidance, which includes an estimated $2 billion hit from tariffs.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The Detroit automaker announced earnings per share of $0.37, which topped the consensus estimate of $0.33. Revenue in the quarter totaled $46.94 billion, which was ahead of the $43.21 billion expected on Wall Street. Sales were up 5% from a year earlier.
Ford had suspended its full-year guidance in May due to U.S. President Donald Trump’s automotive tariffs. At that time, Ford predicted a $2.5 billion impact from tariffs this year. The automaker’s new estimate reflects a $3 billion hit from tariffs, but the company estimates it can offset $1 billion of that.
Ford’s earnings per share. Source: Main Street Data
Continued Uncertainty
Like other motor vehicle manufacturers, Ford is grappling with a 25% duty on imported vehicles and many auto parts. The company’s new guidance includes adjusted earnings of $6.5 billion to $7.5 billion, lower than the pre-tariff range it issued in February of $7 billion to $8.5 billion.
Free cash flow this year is now estimated to be between $3.5 billion and $4.5 billion, in line with the prior guidance. It also expects capital spending of about $9 billion versus an earlier range of $8 billion to $9 billion. F stock has gained 15% this year.
Is F Stock a Buy?
The stock of Ford Motor Co. has a consensus Hold rating among 16 Wall Street analysts. That rating is based on two Buy, 11 Hold, and three Sell recommendations. The average F price target of $10.14 implies 10.11% downside risk from current levels. These ratings are likely to change after the company’s financial results.
