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Ford Motor Co. reported mixed Q1 2025 results, with earnings per share (EPS) of $0.14 surpassing the $0.02 consensus estimate but falling from $0.49 in the prior year. Revenue reached $37.42 billion, exceeding the $36.2 billion forecast but down 6.2% year-over-year. The Ford Pro segment delivered strong results, generating $1.3 billion in EBIT with an 8.6% margin on $15.2 billion in revenue, while Ford Credit’s EBT rose to $580 million. However, challenges persisted, including an $849 million EBIT loss in the Ford Model e segment and a decline in Ford Blue’s EBIT to $96 million due to volume drops and unfavorable exchange rates. CEO Jim Farley highlighted cost management improvements and market share gains, but the suspension of financial guidance amid tariff-related uncertainty has drawn mixed analyst reactions, with price targets ranging from $8.50 to $10. Ford faces headwinds from 25% U.S. tariffs on imported vehicles, supply chain disruptions, and a pause in developing advanced EV architecture, raising concerns about its EV strategy. Despite these challenges, April U.S. vehicle sales rose 16%, supported by the "From America, For America" campaign. Financially, Ford’s net margin of 3.78% and return on equity (ROE) of 4.09% exceed industry averages, but its high debt-to-equity ratio of 3.59 signals elevated financial risk. While the company continues to focus on cost efficiency and market share, uncertainties around tariffs, EV competitiveness, and macroeconomic pressures remain key risks.
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About F

Ford Motor Co. manufactures automobiles under its Ford and Lincoln brands. In March 2022, the company announced that it will run its combustion engine business, Ford Blue, and its BEV business, Ford Model e, as separate businesses but still all ... Read more

Ways to trade options* on F

Bullish Option Strategy: Long Calls

Traders buy a single call option on a stock or ETF. This strategy can benefit from a price increase while risking more capital than a spread.

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