Shares of automaker Ford (F) tanked in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $0.47, which missed analysts’ consensus estimate of $0.68 per share.
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Auto sales increased by 5.6% year-over-year, with revenue hitting $44.81 billion. This also missed analysts’ expectations by $70 million. This yearly revenue increase was mostly driven by Ford’s Pro Commercial Segment, which grew by 9% due to high demand for new F-150 pickup and record volumes of Transit commercial vans.
Looking forward, management now expects adjusted EBIT and adjusted free cash flow for FY 2024 to be in the ranges of $10 billion to $12 billion and $7.5 billion to $8.5 billion, respectively. It’s worth noting that while the EBIT forecast remained unchanged, the free cash flow outlook got a $1 billion dollar boost compared to last quarter.
What Is Ford’s Target Price?
Turning to Wall Street, analysts have a Moderate consensus rating on Ford stock based on seven Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 6% rally in its share price over the past year, the average Ford price target of $14.82 per share implies 8.61% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
