The negative reaction by investors is a mix of issues related to the chip problem following Ford reporting its results after the closing bell Wednesday.
While analysts were thoroughly impressed with the company s performance in the first quarter, which included a record $4.8 billion in adjusted pretax profits, they were far less impressed, if not confused, with its guidance for the year. Let s just put it like this: Ford s 1Q was far too good to extrapolate while the remainder of the year is too challenged to extrapolate, Morgan Stanley analyst Adam Jonas said in a note to investors.
Ford s stock closed Thursday at $11.26 a share, down 9.4%. Shares remain up 28.1% in 2021. The company s market cap is more than $44 billion.
Shares of
Ford Motor Company (NYSE:F) were trading sharply lower on Thursday morning, after the company cut its guidance for 2021 and said that an ongoing shortage of semiconductors could force it to cancel half of its planned second-quarter production.
As of 10 a.m. EDT, Ford s shares were down about 9.1% from Wednesday s closing price.
So what
Ford s first-quarter earnings were actually quite good. The Blue Oval trounced Wall Street s estimates with $3.3 billion in net income and an adjusted operating margin of 13.3%. For a mature automaker, those are very strong results, especially in light of the ongoing chip shortage.
Ford s newest products, including the overhauled F-150, the Bronco Sport, and the electric Mustang Mach-E (pictured), are all selling really well. The question is whether Ford will be able to meet demand in the near term in light of the chip shortage. Image source: Ford Motor Company.
The negative reaction by investors is a mix of issues related to the chip problem following Ford reporting its results after the closing bell Wednesday.
While analysts were thoroughly impressed with the company s performance in the first quarter, which included a record $4.8 billion in adjusted pretax profits, they were far less impressed, if not confused, with its guidance for the year. Let s just put it like this: Ford s 1Q was far too good to extrapolate while the remainder of the year is too challenged to extrapolate, Morgan Stanley analyst Adam Jonas said in a note to investors.
Ford s stock closed Thursday at $11.26 a share, down 9.4%. Shares remain up 28.1% in 2021. The company s market cap is more than $44 billion.
Global chip shortage will slash Fordâs production by about half in the second quarter.
Ford has developed vehicles that could revitalize profits, including a redesigned version of its top-selling F-150 pickup truck.Credit.Tannen Maury/EPA, via Shutterstock
April 28, 2021
Ford Motor said on Wednesday that the global shortage of computer chips will take a greater toll on its business than previously expected and would likely cut its vehicle production in the second quarter by about half.
âThe effects of the shortage have grown,â Fordâs chief financial officer, John Lawler, said during a conference call with reporters. âWe now expect the semiconductor shortage to get worse and bottom out in the second quarter but continue to put pressure on our operating results in the second half of the year.â