The second-largest US automaker, Ford Motor Company (F), has disappointed investors by underperforming the broader market for the last six years. In 2018, the stock lost 38.1% against 6.2% losses in the S&P 500 Index (SPY). By comparison, other auto stocks (XLY) General Motors (GM), Fiat Chrysler Automobiles (FCAU), and Toyota (TM) lost 18.4%, 18.9%, and 8.7%, respectively. After largely trading on a positive note in January so far, Ford stock turned negative again today.
Key negative factors
Today, Ford announced its full-year 2018 preliminary results. The company said it expects its adjusted EPS at $ 1.30, down about 36.9% year-over-year. While Wall Street analysts were expecting Ford to report year-over-year weakness in its 2018 results, its preliminary EPS of $1.30 were even lower analysts’ consensus estimate of $1.33.
Going forward in 2019, the company predicts global auto sales volumes to remain flat compared to 2018. It also said it doesn’t expect commodity costs to witness any major changes this year.
In 2019, Ford expects its revenue and EBIT to improve year-over-year. However, the exact terminology Ford used was “potential improvement from 2018,” which was insufficient to please investors as the stock tanked 6.0% after the update. Ford is slated to release its final 2018 results on January 23.