Ford’s Regime Change Fuels Earnings, Stock-Rebound Expectations

Ford Motor Co. is enjoying a run-up in its long-lagging stock as Wall Street sees stronger-than-expected third-quarter earnings leading to better times ahead under a new management team.

Since Chief Executive Officer Jim Farley took the wheel from retiring Jim Hackett Oct. 1, the automaker’s shares have soared 21%, signaling improved sentiment after a six-year rout. Analysts are increasing estimates, price targets and, in one case, upgrading the stock to a buy. That’s a reprieve for shares out of favor since superstar CEO Alan Mulally retired in 2014.

When Ford reports third-quarter results after the market close Oct. 28, it’s forecast to post adjusted earnings per share of 19 cents and earnings before interest and taxes of $1.34 billion, according to analysts’ estimates compiled by Bloomberg. That’s down substantially from 34 cents and $1.8 billion a year ago. But thanks to a resurgent auto market following a pandemic-induced drop in the spring, it’s better than initially expected when the company predicted its first annual loss in more than a decade.