Better-than-expected results and optimistic outlook drive stock surge
- Ford stock jumps after better-than-expected earnings
- Ford expects to generate an operating profit of about $11 billion in 2024
- U.S. new car sales rose more than 10% in 2023
- Labor costs are rising while new-car prices are slipping
- Ford’s EV division, Model e, lost $3.1 billion in the first nine months of the year
- Analysts project Ford to generate a 2024 operating profit of about $9.6 billion
- Options markets imply Ford stock will move about 6% following earnings
Ford stock has experienced a significant jump after the auto manufacturer reported better-than-expected earnings. The company’s fourth-quarter operating profit of $1.1 billion surpassed Wall Street’s expectations of just under $1 billion. Additionally, Ford expects to generate an operating profit of about $11 billion in 2024, exceeding the projected $10 billion. This positive news comes amidst conflicting signals about the car industry’s outlook, with U.S. new car sales rising but electric vehicle sales stagnating. Rising labor costs and slipping new-car prices further complicate the landscape. Ford’s EV division, Model e, has experienced losses of $3.1 billion in the first nine months of the year. Analysts project a 2024 operating profit of about $9.6 billion for Ford. Options markets indicate that Ford stock will likely move about 6% following the earnings announcement. Despite these challenges, Ford had one of its best years ever in 2023. The company’s conference call to discuss the results is scheduled for 5 p.m. Eastern time.
Public Companies: Ford Motor (F), General Motors (GM)
Private Companies:
Key People: Mike Ward (Freedom Capital Markets analyst)
Factuality Level: 7
Justification: The article provides information about Ford’s earnings and forecasts, as well as the car industry’s outlook. The information is based on reported numbers and analyst projections. However, there is some speculation and opinion presented, such as the analyst’s expectation of Ford’s guidance and the mention of Ford having one of its best years ever in 2023.
Noise Level: 3
Justification: The article provides information on Ford’s earnings and forecasts, as well as the car industry’s outlook. However, it lacks in-depth analysis, scientific rigor, and actionable insights. It also contains some repetitive information and irrelevant details about the UAW strike and General Motors’ results.
Financial Relevance: Yes
Financial Markets Impacted: Ford stock
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses Ford’s better-than-expected earnings and its forecasted operating profit for 2024. While there is no mention of an extreme event or its impact, the financial performance of Ford is relevant to the financial markets.
www.marketwatch.com 
