Ford Motor Corp. reported first quarter earnings higher than anticipated by analysts. According to the car maker, strong U.S. sales was a major factor in the quarter's earnings performance.
The company’s adjusted earnings came in at 44 cents per share, beating analysts’ estimates of 27 cents (based on Refinitiv poll). Its revenue from the automotive segment revenue was $37.24 billion for the quarter, compared to analysts’ expectation of $37.08 billion.
The higher-than-expected earnings were, however, accompanied by weakening demand from markets like China which was a drag on Ford’s total revenue. Total revenues dipped -3.9% to $40.34 billion. The demand decline in China, Europe and other nations led to Ford losing almost half a percent of its global market share over the first three months of the year.
Nevertheless, U.S. sales remained steady at $25.4 billion, on the back of strong domestic demand for trucks and SUVs – contributing to around $2.2 billion in its overall $2.4 billion of operating earnings for the quarter. Ford CFO Bob Shanks emphasized that solid demand for the F-Series was a factor behind earnings boost from the North America market.
Shanks indicated that the first quarter was likely to be the strongest period of the year for Ford.
Looking ahead, Ford seems to be upping the ante on innovation. The company said earlier this week that it would invest $500 million in sustainable energy automaker Rivian, and it also indicated that the electric F-150 pick-up truck is in the middle of its development cycle.
The 10-day RSI Indicator for F moved out of overbought territory on February 14, 2024. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 42 instances where the indicator moved out of the overbought zone. In of the 42 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
The Momentum Indicator moved below the 0 level on February 22, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on F as a result. In of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for F turned negative on February 22, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where F declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
F broke above its upper Bollinger Band on February 07, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 70 cases where F's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
F moved above its 50-day moving average on January 25, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for F crossed bullishly above the 50-day moving average on January 31, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where F advanced for three days, in of 296 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 256 cases where F Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.157) is normal, around the industry mean (6.076). P/E Ratio (11.528) is within average values for comparable stocks, (18.386). Projected Growth (PEG Ratio) (0.736) is also within normal values, averaging (5.478). Dividend Yield (0.048) settles around the average of (0.042) among similar stocks. P/S Ratio (0.286) is also within normal values, averaging (37.049).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. F’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of automobiles and trucks
A.I.dvisor indicates that over the last year, F has been closely correlated with GM. These tickers have moved in lockstep 87% of the time. This A.I.-generated data suggests there is a high statistical probability that if F jumps, then GM could also see price increases.