What Led to Ford’s (F, $8.54) Underperformance in 2018?
Ford published its fourth quarter earnings and reported a loss of $116 million.
But the news that caught everyone’s attention is that the company reported a 28% y-o-y drop in its operating income, excluding the pension charge and other one-time items, both for the quarter and for the year. After the drop, operating profit for the quarter stood at $1.5 billion and $7 billion for the year.
On a per share basis, Ford earned $0.30 in the fourth quarter and $1.30 for the full year, both down from the previous year.
Even though Ford sold more high-end vehicles in the fourth quarter than it did in the same quarter of 2017, expensive key commodities, rising costs associated with the on-going Takata airbag recall, and losses at Ford's Chinese joint ventures overruled the achievements.
Analysts believe that key reason for Ford’s fourth quarter loss is its whopping one-time charge of $1.179 billion that left it with hefty on-paper losses.
Segment-wise, in North America, Ford earned $2 billion in the fourth quarter, and for the full year, it earned $7.6 billion, down from $8.1 billion in 2017. In South America, Ford lost $199 million in the fourth quarter, and for the full year, Ford lost $678 million, an improvement of $75 million from 2017. In Europe, Ford lost $199 million in the fourth quarter, with a full year loss of $398 million. In the Middle East and Africa, Ford lost $49 million in the fourth quarter with full year losses up to $7 million. In Asia Pacific, Ford lost $381 million in the fourth quarter, with a $534 million loss in China.
F in upward trend: price may ascend as a result of having broken its lower Bollinger Band on March 05, 2026
F may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 41 cases where F's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where F advanced for three days, in of 322 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 255 cases where F Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on March 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on F as a result. In of 84 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 March 02, 2026. 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 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
F moved below its 50-day moving average on March 02, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for F crossed bearishly below the 50-day moving average on March 06, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 that the returns do not compensate for the risks. F’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued 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 (1.353) is normal, around the industry mean (4.030). P/E Ratio (11.838) is within average values for comparable stocks, (286.315). F's Projected Growth (PEG Ratio) (9.214) is very high in comparison to the industry average of (1.846). Dividend Yield (0.049) settles around the average of (0.046) among similar stocks. P/S Ratio (0.259) is also within normal values, averaging (11.626).
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.
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a manufacturer of automobiles and trucks
Industry MotorVehicles
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