Ford Motor (NYSE:F) stock fell about 3.4% in yesterday’s extended trade following the release of weak third-quarter results. Also, the automaker pulled back its full-year 2023 guidance. Ford disclosed an impact of about $1.3 billion to its operating earnings this year caused by the six-week-long United Auto Workers (UAW) union strike.
Ford finally entered into a tentative agreement with UAW on Wednesday night. The deal includes a 25% salary hike over the contract’s four-and-a-half-year life, including an 11% wage increase for workers in the first year alone. The ratification of the deal by the workers is still pending.
Ford’s Q3 Performance
Ford’s Q3 2023 adjusted earnings per share (EPS) increased 30% to $0.39 but missed analysts’ consensus estimate of $0.46. Sales increased by 11% year-over-year to $43.8 billion. This came slightly below analysts’ expectations of about $44 billion.
Revenue from the company’s commercial vehicle unit, Ford Pro, witnessed a 16% year-over-year growth, while revenue from Ford Blue, a lineup of gas and hybrid vehicles, rose 7%. Furthermore, sales of Ford Model e electric vehicles (EVs) increased by 26%.
However, the company’s overall performance was impacted by a loss of $1.3 billion posted by its EV unit due to continued investments and lower prices. The pricing of the overall EV sector has been impacted by the aggressive price cuts triggered by EV giant Tesla (TSLA).
Is Ford a Buy, Sell, or Hold Stock?
Overall, Wall Street analysts are cautiously optimistic about Ford stock. It has received six Buys, seven Holds, and one Sell recommendation for a Moderate Buy consensus rating. Meanwhile, the average F stock price target of $15.14 implies 33.4% upside potential from current levels.
