Ford Motor Company
In the last month, Ford Motor Company (F) stock has largely traded on a negative note. Since it reported its dismal second-quarter results on July 25, the stock has gone down by about 10% as of August 14. The company’s second-quarter adjusted earnings fell by ~52% YoY (year-over-year) to $0.27 per share and missed Wall Street analysts’ estimates of $0.31. The company also reported a 2.5% YoY decline in its revenue for the quarter, and its profitability also deteriorated. Before we explore Ford’s July US sales data in detail, let’s take a quick look at its stock performance.
Read more about Ford’s second-quarter earnings in An In-Depth Review of Ford’s Q2 2018 Earnings Report.
In the second quarter, Ford’s stock traded on a mixed note despite a minor positive movement in the broader market. The company’s stock fell by 0.1%, while the S&P 500 Index rose 2.9% in the second quarter. At the same time, General Motors (GM) and Tesla (TSLA), other US automakers (XLY), rose 8.4% and 28.9%, respectively.
The Italian American auto giant Fiat Chrysler (FCAU) turned negative and lost 7.9% in the second quarter. Interestingly, Fiat Chrysler was the auto sector’s number two gainer in 2017 with an impressive 96.4% return.
In the third quarter so far, most of the US auto stocks have remained under pressure due to investors’ fear about potential steep auto tariffs. As of August 14, Ford, GM, and FCAU were down 14.2%, 8.1%, and 15.5% quarter-to-date against 4.5% gains seen in the S&P 500 benchmark so far. Notably, GM, Ford, and FCAU all revised their 2018 guidance downward during their second-quarter earnings event, which hurt auto investor sentiments and drove their stocks down.
Now, let’s move on by looking at Ford’s US auto sales in July 2018 and its sales trend in 2018 so far.