Which Way Will Ford’s Earnings Drive The Stock

Ford Motor Company (F) is slated to report First Quarter 2023 Earnings after the market close on Tuesday, May 2, 2023. (1) Wall Street forecasts earnings per share (EPS) of $0.40 compared to $0.38 last year. Sales are projected to rise to $36.08 billion versus $32.11 billion for the same period last year. (2)

The automaker recently announced Ford was the best-selling brand in America for the first quarter. (3) Some of the highlights include truck sales rising 19.6 percent, led by a 21.1 percent gain for their keystone F-Series. Impressively, the company’s electric vehicle (EV) sales soared 40 percent.

Investors might expect F’s stock to follow along sales trends, but instead Ford shares have been in reverse of late, but it could be reaching oversold territory on the eve of earnings news. As you’ll see on the chart below, Ford’s relative strength index (RSI) is trending lower and just 10 points above an oversold reading of 30.

Based on the already available news on first quarter sales, it’s doubtful that earnings will fall short of expectations. So, guidance will be everything.

On the downside, there is support at $11 and double-layered resistance between $12.09 and $12.30, the 50- and 200-day moving averages, respectively. If F trades down to support at $11 prior to next week’s financial report card, it could be positioned to move back to the benchmark moving averages if forward expectations are inline or better than expected.  If guidance is poor, then the next level of support at $10 could come into play.

Trading earnings is highly risky and only for the most aggressive investors who can afford to lose money.

Rich Meyers


1 – https://shareholder.ford.com/Investors/events/event-details/2023/Ford-Motor-Company-First-Quarter-2023-Earnings-2023-Y8jJSXXDaK/default.aspx

2 – https://finance.yahoo.com/quote/F/analysis?p=F

3 – https://s201.q4cdn.com/693218008/files/doc_news/2023/04/q1-2023-sales-final.pdf