Ford Motor Trading forecasts and signals

Automaker Ford Motor reported that supplier costs will rise about $1 billion more than expected in the current quarter because of inflation, and the company estimates it will have 40,000 to 45,000 vehicles in inventory without parts, delaying sales.Ford shares fell 4.42% to $14.27 at the Sept. 19 postmarket on the NYSE.The No. 2 automaker in the U.S. reiterated expectations for full-year 2022 adjusted earnings before interest and taxes of $11.5 billion to $12.5 billion.Ford said in July that its second-quarter results were driven by higher-margin vehicles, partly offset by higher commodity costs and expenses. At the time, Ford said it expected commodity costs to rise by $4 billion over the year, and added that management was "actively looking" for ways to offset rising costs.In July, Ford said it was facing continued supply chain disruptions.Over the past two years, automakers have faced a series of supply chain problems that have repeatedly delayed vehicle production, often due to a shortage of semiconductor ...

Automaker Ford Motor Co will stop selling the Transit Connect van in the U.S. by the end of next year and abandon plans to produce the next model of the car in Mexico.Sales of Transit Connect small vans in the U.S. have been falling for some time, and last year Ford said it could face fines of up to $1.3 billion in a long-running dispute over import duties paid for cars.U.S. sales were down 15% in July after falling about 25% last year.Earlier, the issuer reported a higher-than-expected net profit for the second quarter and confirmed its annual profit forecast, but it was noted that management is looking for ways to compensate for rising costs.On August 22, the company said it would cut a total of 3,000 full-time and contract jobs, mainly in North America and India, as it develops software-controlled electric vehicles.Ford shares on the NYSE at auction on August 23 rose by 1.59% to $15.32 per paper, and on the premarket on August 24 at the moment they are trading at $15.37 ...

A jury in Georgia has ruled to oblige Ford Motor to pay $1.7 billion in connection with the crash of a pickup truck that claimed the lives of two people, according to media reports. Spouses Melvin and Vonzil Hill died in April 2014 as a result of the crash of their 2002 Ford F-250.The couple's children, Kim and Adam Hill, were plaintiffs in a multi-year case where the cause of the Hills' death was called a defect in the roof of Ford pickups. The plaintiffs' lawyers presented evidence of almost 80 similar truck overturns, as a result of which motorists were injured or killed.The issuer has stated that it will appeal the court's decision.Ford shares on the NYSE at auction on August 19 adjusted by 1.67% to $15.88 per paper, and at the premarket on August 22 at the moment they lose 3.09%, trading at ...

U.S. manufacturer Ford Motor Co is raising prices for its F-150 Lightning electric pickup truck as the company faces rising raw material costs. Prices will be increased in the range of $6,000 to $8,500 depending on the option, with the cheapest Pro model now costing about $47,000. Customers who have ordered trucks awaiting delivery will not be affected by the increase.Last month, Ford said it expects commodity spending to rise by $4 billion this year. The cost of lithium used in batteries has jumped recently as car companies including Tesla Inc and Rivian Automotive Inc rush to secure supplies to avoid production disruptions.Earlier in June, General Motors Co also raised prices for its Hummer EV pickup truck to offset rising prices for raw materials and shipping.Ford shares on August 9 fell by 3.74% to $15.19 per ...

The American automaker Ford in the 2nd quarter increased revenue to $40.19 billion, which is 50% higher than the value of $26.75 billion for the same period a year earlier. The resulting value was higher than market expectations – $36.87 billion. The number of cars sold increased to 1,032 million cars compared to 966 thousand in the 1st quarter. The growth of cars sold in the quarter was 35% YoY and was mainly driven by an increase in sales of Ford cars in North America. This region accounts for about 60% of total auto supplies. Sales in China decreased to 111 thousand cars against 125 thousand. a quarter earlier, that Ford associates with production restrictions due to Covid-19.Adjusted net profit for the reporting period was $2.74 billion compared to $511 million for the same period a year earlier. Adjusted earnings per share amounted to $0.68 against the expected $0.45 according to the consensus forecast, which is 423% higher than the result for the 2nd quarter of last year, which accounted for the maximum drop in the number of cars sold due to a shortage of semiconductors.Ford has kept the forecast values of the current year. Adjusted operating profit should be $11.5–12.5 billion at the end of the year against $10 billion for 2021. Adjusted free cash flow is projected by the company at $5.5–6.5 billion, which is 19.5% higher than $4.6 billion a year earlier. Ford CFO John Lawler noted that demand for Ford cars remains high: in fact, cars are being sold as fast as the company can produce them.The company showed results significantly better than expected and was able to increase the number of car deliveries. The target price for the stock is ...

American automaker Ford Motor Co plans to cut up to 8 thousand jobs in the coming weeks to reduce costs and focus on the production of electric vehicles.Cuts are expected in the Ford staff, as well as in the Ford Blue division, created in March to manage the company's operations for the production of internal combustion engines. The cuts can be carried out in stages and will most likely begin this summer.In March of this year, the company announced that it would increase spending on electric vehicles from $30 billion to $50 billion by 2026. By 2023, the company expects to produce 6 thousand electric vehicles per year, and by 2026 – 2 million per year. Ford also reorganized its operations into separate divisions focused on electric vehicles and gasoline vehicles – Ford Model e and Ford Blue, respectively.Firing employees will reduce labor costs and compete with industry leaders. However, this news is only part of the long-term development strategy of the company, which has already been announced, so we do not expect a strong reaction of quotes to it.Ford shares rose by 1.11% on July 20, to $12.73 per ...

Ford Motor Company (F) is one of the largest automakers in North America, engaged in a full range of operations from design to sale of finished cars.Investment attractiveness factors1. Ford's total sales in the USA in the 2nd quarter are declining due to a shortage of semiconductors, nevertheless, the North American automaker continues to successfully increase sales of electric vehicles at a high pace. Sales of Ford electric cars in the USA in May increased by 221% YoY, and in April the same segment showed an increase of 50% YoY. Electric vehicles still account for less than 10% of the company's total sales, but the gradual electrification of existing models, such as the F-150 pickup truck, the classic version of which is the most popular in its class in the United States, will help maintain margins. Currently, Ford has about 200 thousand pre-orders for the electric model F-150 Lightning, deliveries of which began in April. The company plans to reach a capacity of 600 thousand electric vehicles per year by the end of 2023, in 2021 the company sold 3900 thousand cars.2. Average car sales prices will continue to rise. Consumer demand for cars is likely to remain elevated with continued low unemployment and above-average wage growth. According to Cox Automotive, the average selling price of new cars in the United States by the end of 2021 has increased by 11.8% since the beginning of the year, to $45.7 thousand. In May of this year, this figure amounted to $47.1 thousand. These circumstances will allow automakers to maintain sales volumes in monetary terms, but the declining operating marginality due to rising costs may prevent them from increasing profits, however, the current levels of stock quotes after falling by 45% since the beginning of the year already reflect these negative expectations. The gradual recovery of the number of cars produced in the second half of this year and high sales prices should allow the company to maintain its profit for the year at least at the high levels of last year.3. Ford's business approach involves the gradual electrification of its traditional models with an internal combustion engine, which already have some confidence from consumers, which allows you to quickly increase sales and get a large marginality per vehicle. The company also manages to occupy the second place in the electric car market in the United States after Tesla, Inc. At the same time, the growth rate of electric vehicle sales at the end of the 2nd quarter at Ford may be higher than that of the market leader, based on the sales dynamics for April and May, which is not least due to a successful tactical bet on the pickup segment, which was less represented in the electric vehicle market.ConclusionWe believe that Ford Motor Company is an attractive object for investment, since the company's shares have already undergone significant sales, while the automaker has a fairly stable business model that should allow leveling the damage due to production restrictions.The target price of the stock is $14.4. We recommend setting the stop loss at ...

The market the day beforeThe US stock exchanges ended the trading session on June 15 with growth. The S&P 500 gained 1.46%, returning to 3,790 points, the Nasdaq rose 2.50%, the Dow Jones rose 1.00%. The discretionary goods sector (+2.81%) and telecoms (+2.47%) became the leaders of growth. The negative dynamics was demonstrated by energy companies (-2.21%) and suppliers of raw materials (-0.03%).Company newsBoeing (BA: +9.46%) is working to stabilize the production and supply of 737 MAX aircraft. Earlier, the Chinese airline China Southern Airlines conducted a successful test flight of the 737 MAX, which signals the likelihood of resuming the use of aircraft of this brand in China due to high demand for air transportation.Nio (NIO: +7.77%) has officially introduced a new model of the ES7 electric car, which has become the most powerful serial crossover. The start of sales of the ES7 is scheduled for the end of August.Ford (F: +0.57%) is recalling 2.9 million vehicles produced in 2013-2021 to fix transmission problems. This was the third recall of the automaker's products in a week.We expectFollowing the meeting on June 14-15, the Fed for the first time since 1994 raised the discount rate immediately by 75 bps, in the range of 1.50–1.75%. By the end of this year, the FOMC plans to bring the upper limit of this range to 3.5%, despite the fact that 2.8% was predicted in March. Thus, at the July meeting, the regulator may raise the rate by 75 bps again, and in September it will be raised by 50 bps. The intensification of monetary policy tightening is expedient in conditions when inflation has already tripled the target of the Federal Reserve, and consumer inflation expectations are rising, despite the fact that the situation on the labor market remains prosperous. At a press conference dedicated to the Fed meeting, Jerome Powell noted the acceleration of real GDP growth in the current quarter. Consumer spending remains steady, but the increase in capital investment is starting to slow down. Along with this, the increase in mortgage rates significantly cools the demand for housing. The day before, statistics were released reflecting a decrease in retail sales in May by 0.3% mom, as inflation and a shortage of supply of some goods, primarily cars, restrain consumer activity. It is likely that the weakening of demand will reduce the pressure of price growth, which will be the reason for a less active tightening of the PREP next year. The Fed is considering a rate cut in 2024.The regulator has raised the inflation forecast for the personal consumer spending Price index (PCE) for the current year from 4.3% to 5.2%, taking into account the rise in the cost of energy and food under the influence of geopolitical factors. The benchmark for the dynamics of US GDP for 2022 assumes its growth by 1.7% against the previous forecast of 2.8%. Unemployment is expected to reach 3.7% at the current 3.6%, next year the indicator may rise to 3.9%.The stock exchanges of the Asia-Pacific region ended trading on June 16 in different directions. Japan's Nikkei gained 0.40%, Hong Kong's Hang Seng dropped 2.57%, China's CSI 300 lost 0.66%. EuroStoxx 50 has been losing 1.80% since the opening of the session.Brent crude futures are trading at $119 per barrel. The price of gold is $1,834 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 3710-3800 points.MacrostatisticsData on the real estate market for May will be published today. The number of construction permits is projected to decrease to 1.78 million with a reduction in the volume of construction started from April's 1.724 million to 1.7 million.Sentiment IndexThe sentiment index lost two points, dropping to 29.Technical pictureThe S&P 500 showed a recovery of quotations after five sessions that ended in negative territory. The RSI remains near the oversold level, which indicates the likelihood of a short-term rebound. MACD does not signal the approach of a reversal, while morning futures suggest a further decline in quotations. The nearest resistance for the broad market index may be located at around 3900 points, and the range of 3660-3700 points will serve as support.ReportsAdobe (ADBE) will present quarterly results this Thursday. The consensus forecast assumes that the revenue of one of the leading representatives of the IT sector will reach $4.3 billion (+13.2% YoY) with EPS at $3.3 (+8.9% YoY). Adobe's competitor in the segment of marketing and e-commerce technologies Salesforce.com (CRM) aims to boost business development by expanding the product line, while strengthening the main software direction. In March, management presented a weak quarterly forecast based on the assumption that increased competition is damaging the design software segment. According to Adobe Chief Executive Officer Shantanu Narayen, for the first time since 2017, the company will have to significantly change the prices of its most popular products. It is expected that this will affect earnings in the second half of the fiscal year. ADBE shares have lost 30% since the beginning of ...