Why Ford Stock Hit A New 52-Week Low Today
Ford Motor Company
Ford Motor Co (NYSE:F) shares are trading lower by 2.7% to $9.70 Monday morning, marking a new 52-week low. The stock is falling on downward momentum after the company last week reported mixed third-quarter results. The company also withdrew its 2023 guidance and said it is postponing $12 billion planned for EV investment.
Additionally, the United Auto Workers (UAW) and Ford last week reached a tentative agreement to resolve the union's strike. The deal entails a 25% wage increase for all employees and additional benefits.
See Also: Ford Will Not Scrap Combustion And Hybrid Vehicles For EVs
What Happened With Ford Earnings?
Ford's Q3 revenue was $44 billion, an 11% increase from the previous year, surpassing the estimated revenue of $41.2 billion. However, the company fell short of earnings expectations with 39 cents per share compared to the expected 45 cents.
Ford's Model e segment, focused on electric vehicles, saw a 44% YoY increase in wholesale unit sales, totaling 36,000. However, the Model e unit reported an EBIT loss of $1.3 billion, bringing the year-to-date losses to $3.1 billion...Read More
Ford's decision to withdraw its 2023 guidance suggests uncertainty about its future performance. Investors often rely on company guidance to make investment decisions, so when a company withdraws or lowers its guidance, it can create uncertainty and reduce investor confidence.
The postponement of planned investments in EVs is potentially a significant concern, as the automotive industry is increasingly shifting towards electric and autonomous technologies.
Ford's decision to delay this investment may be seen as a sign that it could fall behind competitors in the growing EV market.
Additionally, while a 25% wage increase and additional benefits for employees can be a positive development for workers, it can also impact a company's profitability and operating costs.
Investors may be concerned that higher labor costs could negatively impact Ford's bottom line.
According to data from Benzinga Pro, Ford Motor has a 52-week high of $15.42 and a 52-week low of $9.68.