In the week ending May 5, Ford Motor Company (F) stock fell 2.9% and closed at $11.14. The company’s stock isn’t very far from its 52-week low level of $10.90. Notably, Ford has been underperforming the broader market and its peers for three consecutive quarters. In 1Q17, Ford stock fell 4.0%. During the same period, General Motors (GM), Fiat Chrysler (FCAU), and Tesla (TSLA) stock rose 1.5%, 19.8%, and 30.2%, respectively. Let’s explore what could be hurting Ford stock these days.
Weak 1Q17 results
Ford released its 1Q17 results on April 27, 2017. The company’s adjusted EPS (earnings per share) fell 43% on a YoY (year-over-year) basis to $0.39 in 1Q17 from $0.68 in 1Q16. However, its results were marginally better than Wall Street analysts’ EPS estimate of $0.36 for 1Q17.
Ford’s falling YoY sales volume, lower global market share, and weaker profitability continued to haunt investors in 1Q17.
April sales fell
In April 2017, Ford’s US sales fell to 214,695 vehicle units from 231,316 units sold in April last year—a 7.2% YoY fall in the company’s US sales. During the month, Ford’s car and truck sales fell 21.2% and 4.2% YoY, respectively, while its SUV sales in the US rose 1.2%.
Trucks tend to yield much higher profit margins for automakers (XLY). As a result, Ford’s weaker truck sales in April could also hurt its 2Q17 margins and add negative sentiments.
Technically, Ford stock could continue to face stiff support near $11.05. However, a violation of the support level could attract renewed selling pressure towards the next key support near $10.45.
In the next part, we’ll look at Fiat Chrysler’s recent updates and its key technical levels for the second week of May.