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How Investors Reacted to Ford’s Q4 Earnings Report


Jan. 24 2019, Updated 3:14 p.m. ET

Ford’s fourth-quarter earnings

US legacy automaker Ford Motor Company (F) announced its fourth-quarter earnings results after the market closed on January 23. In the quarter, Ford’s adjusted EPS stood at $0.30, ~23.1% lower than the company’s adjusted EPS of $0.39 in the fourth quarter of 2017. Its adjusted EPS were worse than Wall Street analysts’ consensus estimate of $0.32.

Let’s take a closer look at how Wall Street reacted to Ford’s fourth-quarter earnings results.

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Ford stock

Before its fourth-quarter earnings announcement, Ford stock witnessed negative movement and closed at $8.34, a 1.9% daily fall, on January 23. However, after the company released its fourth-quarter earnings results, its stock recovered some of these losses in after-hours trading and rose 0.7% to $8.40.

During its third-quarter earnings event, Ford’s management said that it expected the company’s revenue and operating performance to potentially improve in 2019 compared to 2018.

Despite a year-over-year fall in the company’s adjusted earnings, its higher-than-expected revenue growth could be the primary reason why its stock recovered in after-hours trading on January 23.

The broader market has traded on a slightly positive note in January 2019 so far. As of January 23, the S&P 500 Index has risen 5.3% in the month, and Ford stock has risen 9.0%. The stocks of its direct peers (VCR) General Motors (GM) and Fiat Chrysler Automobiles (FCAU) have risen ~12.6% and 12.6%, respectively, in January so far. In contrast, Tesla (TSLA) has fallen 13.6% so far.

In the next article, we’ll take a look at Ford’s performance in its largest market: North America.


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