Analysts revise Ford stock price target after earnings

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Jim Farley is keeping his eyes on the road.

Ford Motor's F chief executive told analysts during the automaker's third-quarter-earnings call that "we're going to continue to stay laser-focused on cost and getting leaner as a company."

Related: Ford CEO admits to a dirty secret that can benefit automaker

The Dearborn, Mich., company missed Wall Street analysts' consensus expectations in the previous quarter as warranty costs pushed down profit.

Ford posted slightly better-than-expected results for the latest quarter but guided to the low end of its 2024 earnings forecasts.

"Costs, especially warranty, has held back our earnings power, but as we bend that curve, there is significant financial upside for investors," Farley said.

"By design 70% of the bonuses for our managers is tied to cost and quality, and more than half of our long-term incentives as leaders is tied to [total shareholder return]."

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The company's top executive noted that competition in electric vehicles has sparked a global price war fueled by overcapacity, a flood of new EV nameplates, and massive compliance pressure.

He also told analysts that Ford was "deep into the design and engineering of our next-generation vehicles."

"Boy, are we excited about these coming out in the next few years," Farley said. "In 40 years in the industry, I've seen a lot of game-changer products. But the midsized electric pickup designed by our California team has got to be one of the most exciting."

Ford CEO: EVs on 'interesting journey'

He added that "it's an incredible package in consumer technology for a segment we know well."

"It matches the cost structure of any Chinese auto manufacturer building in Mexico in the future," Farley said.

Related: Ford CEO's haunting visit to China triggered its radical EV shift

Investors, however, were clearly not pleased with what they heard and Ford shares were off nearly 9% at last check. The stock is down almost 15% year-to-date and up 4.2% from a year ago.

Ford reported third-quarter profit of 49 cents a share, up from 39 cents a year earlier and ahead of the consensus forecast of 47 cents a share.

Revenue rose 5% to $46 billion, beating Wall Street's call for $41.88 billion.

The results included a previously expected $1 billion charge for canceling its all-electric three-row SUV program and making three-row hybrid SUVs instead.

"I would say the EV journey has been really interesting because as much as a slowdown, I'm really proud of the team reacting really quickly to it," Farley said.