Automotive giant Ford Motor Company (NYSE:F) could highlight how the new White House administration is changing focus on business lines when the company reports fourth-quarter financial results after market close Wednesday.
Earnings Estimates: Analysts expect Ford to report fourth-quarter revenue of $43.25 billion, up from $43.21 billion in last year’s fourth quarter according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in two straight quarters and eight of the past 10 quarters.
Analysts expect Ford to report earnings per share of 33 cents, up from 29 cents per share in last year’s fourth quarter. The company has beaten analyst estimates for earnings per share in one straight quarter and five of the past 10 quarters overall.
Read Also: Ford Q3 Earnings: Revenue Beat, EPS Beat, EV Sales Down 33%, Updated Outlook, Shares Slide
Key Items to Watch: With Ford’s earnings report and commentary, most eyes will be on how President Donald Trump is impacting the company’s decisions.
The proposed removal of a $7,500 federal tax credit for electric vehicles could be bad news for companies like Ford that have transitioned to making more EVs.
Ford currently loses money on its electric vehicle segment and the removal of the tax credits could see fewer people buying EVs or Ford needing to offer additional incentives.
In the third quarter, Ford Model e sales were down 33% year-over-year, while the segment had an EBIT loss of $1.2 billion.
Ford said at the time that it anticipated the Model e segment to have a full-year EBIT loss of $5 billion, compared to EBIT profits of $9 billion for Ford Pro and $5 billion for Ford Blue.
The automaker had strong EV sales in the U.S. in 2024 with a report saying the Mach-E ranked third with 51,745 units sold, up 26.9% year-over-year. The F-150 Lightning ranked sixth in the U.S. for EVs with 33,510 unit sales, up 38.7%. Both vehicles moved up the top 10 list with the Mach-E going from fourth to third and the F-150 Lightning going from eighth to sixth.
Ford had the second-highest market share in the U.S. for EVs at 7.5% in 2024, trailing only Tesla (48.7%) and ranking ahead of third place Chevrolet (5.2%).
Along with the potential end of the EV federal tax credit proposed by Trump, the company is also at risk of seeing its profit margins hurt if the president goes through with threats of tariffs on Mexico and Canada.
Ford produces vehicles and vehicle parts in both countries as a way to make its vehicles more affordable. If tariffs are ultimately put on both countries, Ford could be forced to raise its vehicle prices for consumers on some models or take a hit on its profit margins.
F Price Action: Ford stock is up 2.58% to $10.15 on Tuesday versus a 52-week trading range of $9.49 to $14.85. Ford stock is down 13% over the last year.
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