Ford Stock Declines 9% Since Q3 Results: What Should Investors Do?

Zacks11-05 23:39

Last week, U.S. legacy automaker Ford F released its third-quarter 2024 results. The company’s net income during the quarter plunged 25% to $900 million, largely due to losses in its electric vehicle ...

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The company’s net income during the quarter plunged 25% to $900 million, largely due to losses in its electric vehicle ...</p>\n\n<a href=\"https://finance.yahoo.com/news/ford-stock-declines-9-since-153900004.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Ford Stock Declines 9% Since Q3 Results: What Should Investors Do?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFord Stock Declines 9% Since Q3 Results: What Should Investors Do?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-05 23:39 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/ford-stock-declines-9-since-153900004.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Last week, U.S. legacy automaker Ford F released its third-quarter 2024 results. The company’s net income during the quarter plunged 25% to $900 million, largely due to losses in its electric vehicle ...</p>\n\n<a href=\"https://finance.yahoo.com/news/ford-stock-declines-9-since-153900004.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ISBC","symbol_name":"投资者银行","start_time":0,"source_url":"https://finance.yahoo.com/news/ford-stock-declines-9-since-153900004.html","article_id":"2481863352","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/TYvfq5RYMYTbCJ.l4NVR2g--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/6f9fd5d81a15fcc24562a2f18e90107c"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481863352","pubTimestamp":1730821140,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Last week, U.S. legacy automaker Ford F released its third-quarter 2024 results. The company’s net income during the quarter plunged 25% to $900 million, largely due to losses in its electric vehicle  business. Discouragingly, the company also cut its full-year 2024 EBIT forecast. It now expects the metric to be around $10 billion, at the lower end of the previously guided range of $10-$12 billion. Since the results, Ford shares have slid 8.8%.Ford Motor Company Price, Consensus and EPS Surprise. Ford Motor Company price-consensus-eps-surprise-chart | Ford Motor Company Quote. Meanwhile, Ford’s closest peer General Motors GM witnessed a 6% increase in its stock price since it delivered a stellar third-quarter show and raised its full-year 2024 guidance for the third time this year.With shares of Ford falling around 9% in the past week, shares are down 17% over the past six months, significantly underperforming the industry, sector, S&P 500 and its key competitor.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"ISBC":"投资者银行","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","LU0345770308.USD":"NINETY ONE GSF GLOBAL STRATEGIC EQUITY \"A\" (USD) ACC","LU0648000940.SGD":"Natixis Harris Associates Global Equity RA SGD","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","BK4516":"特朗普概念","F":"福特汽车","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","LU0477156797.USD":"HARRIS ASSOCIATES GLOBAL EQUITY \"RE\" (USD) ACC","BK4523":"印度概念","LU0477156953.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"RE\" (USD) ACC","LU0130103400.USD":"Natixis Harris Associates Global Equity RA USD","LU0006061336.USD":"Blackrock US Small and MidCap Opportunities A2 USD","BK4585":"ETF&股票定投概念","BK4555":"新能源车","LU1201861165.SGD":"Natixis Harris Associates Global Equity PA SGD","LU0345770993.USD":"NINETY ONE GSF GLOBAL STRATEGIC EQUITY \"A\" (USD) INC","BK4211":"区域性银行","BK4566":"资本集团","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","GM":"通用汽车","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","LU0211331839.USD":"FRANKLIN MUTUAL GLB DISCOVERY \"A\" (USD) ACC","LU0162691827.USD":"BGF US BASIC VALUE \"A4\" INC","TTM":"塔塔汽车","BK4559":"巴菲特持仓","BK4588":"碎股","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","BK4574":"无人驾驶","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","BK4561":"索罗斯持仓","LU0130517989.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"R\" INC","BK4099":"汽车制造商","LU0072461881.USD":"BGF US BASIC VALUE \"A2\" ACC","LU0130518102.USD":"HARRIS ASSOCIATES GLOBAL EQUITY \"R\" INC"},"translate_title":"福特股价自第三季度业绩以来下跌9%：投资者应该做什么？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TTM":1,"F":1,"GM":1,"ISBC":1,"US7Y.BOND":0.66,"US6M.BOND":0.66,"US5Y.BOND":0.66,"US3Y.BOND":0.66,"US30Y.BOND":0.66,"US2Y.BOND":0.66,"US12M.BOND":0.66,"US10Y.BOND":0.66,"US912797HE00.BOND":0.6},"content_text":"Last week, U.S. legacy automaker Ford F released its third-quarter 2024 results. The company’s net income during the quarter plunged 25% to $900 million, largely due to losses in its electric vehicle (EV) business. Discouragingly, the company also cut its full-year 2024 EBIT forecast. It now expects the metric to be around $10 billion, at the lower end of the previously guided range of $10-$12 billion. Since the results, Ford shares have slid 8.8%.\n\nFord Motor Company Price, Consensus and EPS Surprise\n\nFord Motor Company price-consensus-eps-surprise-chart | Ford Motor Company Quote\n\nStay up-to-date with the quarterly releases: See Zacks Earnings Calendar.\nMeanwhile, Ford’s closest peer General Motors GM witnessed a 6% increase in its stock price since it delivered a stellar third-quarter show and raised its full-year 2024 guidance for the third time this year.\nWith shares of Ford falling around 9% in the past week, shares are down 17% over the past six months, significantly underperforming the industry, sector, S&P 500 and its key competitor.\n6-Month Price Performance Comparison\nImage Source: Zacks Investment Research\nDoes the stock price decline represent a buying opportunity? Or are there enough near-term concerns to give the stock a miss at the moment? Let’s delve into the company’s fundamentals, growth drivers and challenges to see if the stock is worth your money at the moment.\nFord Pro Unit: A Bright Spot Amid Uncertainty\nDespite challenges, Ford's Pro unit stands out as a robust growth engine. This division integrates Ford's commercial vehicle lineup with a comprehensive suite of software and repair services. The third-quarter results showcased strong performance, with revenue and volume growth of 13% and 9% year over year, respectively. EBIT (earnings before interest and taxes) for the segment reached $1.8 billion, a slight increase from $1.7 billion in the same period last year. This is the most lucrative segment of the company.\nSubscriptions to Ford Pro software increased 30% in the September quarter, while mobile repair orders fulfilled by its 2,400-vehicle service fleet rose 70%. Ford Pro's software subscriptions and repair services contribute around 13% of the segmental EBIT, with expectations to reach 20% by 2026.\nThe combination of Ford Pro's strong order books, increasing demand signals and the successful launch of the Super Duty sets the stage for a highly promising future for the Ford Pro segment. The company expects EBIT from the Ford Pro unit to be around $9 billion (up from $7.2 billion in 2023) thanks to continued strength across all three domains: vehicles, software and physical services. Ford’s increasing focus on software technology and services business will be a major driver. \nHigh Dividend Yield to Attract Income Investors\nFord has a high dividend yield of more than 5%, way better than the S&P 500’s yield of 1.24% on average. The company targets distributions of 40-50% of FCF going forward, demonstrating its commitment to shareholder returns. This high yield provides some buffer against the stock’s volatility and could entice those seeking steady income amid uncertain market conditions.\n\nFord Motor Company Dividend Yield (TTM)\n  \nFord Motor Company dividend-yield-ttm | Ford Motor Company Quote\n\nFord Model e: A Persistent Drag\nWhile Ford Pro demonstrates promising growth, the company's Model e segment—its dedicated EV business—continues to struggle. The third quarter saw an 11% year-over-year drop in wholesale volumes and a significant 33% revenue decline. Loss before interest and taxes was $1.22 billion. The challenges for Ford’s EV division stem from both internal and external pressure. The company faces stiff competition, pricing pressure and significant costs associated with new-generation EV development.\nAfter having incurred losses of $4.7 billion in its EV business, Ford anticipates loss to widen to $5 billion this year, exacerbated by ongoing pricing pressure and increased investments in next-generation EVs.\nWarranty and Other Cost Pressure to Clip F Margins\nFord’s struggle to manage warranty expenses has been another sore spot. The automaker’s quality issues, especially with older models, have led to elevated warranty costs. Despite efforts to address these issues, Ford has indicated it could take up to 18 months before substantial cost improvements are realized.\nHigher inflation, particularly affecting Ford’s joint venture in Turkey, is set to exacerbate cost pressure. Increased material prices for the popular Transit van in Europe are likely to erode margins.\nAmid these cost headwinds, Ford cut its overall EBIT forecast for 2024. The company expects EBIT from Ford Blue unit to decline from $7.5 billion in 2023 to $5 billion this year due to higher product manufacturing and warranty costs. \nThe automaker's CFO, John Lawler, acknowledged that while Ford achieved a $2 billion reduction in material and manufacturing costs, these improvements have been largely offset by inflation and warranty-related expenses. These factors have curtailed Ford’s ability to achieve record financial performance this year.\nThe Zacks Consensus Estimate for 2024 and 2025 EPS calls for a decline of 9.4% and 2.5%, respectively.\nBetter to Avoid Ford Stock Now\nWhile Ford’s Pro division is a beacon of strength and the company’s high dividend yield could appeal to income investors, there are too many challenges at play. The persistent losses in the EV division, ongoing warranty and cost issues and heightened competition create a tough environment for growth and profitability. The broader automotive market is also seeing signs of weakening demand and rising inventory levels, which pose additional challenges for Ford.\nGiven these headwinds and the uncertain timeline for a turnaround, Ford may not be a safe bet now, even though it is undervalued and carries a Value Score of A. Ford’s stock may continue to face pressure as it grapples with operational challenges. For now, it may be wise to hold off on investing in Ford until clearer signs of sustainable growth and cost control emerge.\nFord currently carries a Zacks Rank #5 (Strong Sell).\nYou can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nFord Motor Company (F) : Free Stock Analysis Report\nGeneral Motors Company (GM) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481863352"}