What Happened?
Shares of automotive manufacturer Ford (NYSE:F) fell 6.8% in the morning session after the company reported underwhelming fourth-quarter results, as 2025 guidance threw some cold water on things. The outlook was in line to below expectations and "presumes headwinds related to market factors." On the other hand, Ford blew past analysts' sales volume expectations this quarter. Its revenue also outperformed Wall Street's estimates by a wide margin. Overall, this was a mixed yet weaker quarter.
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What The Market Is Telling Us
Ford’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock dropped 17.2% on the news that the company reported weak second-quarter earnings results. Its operating income and EPS missed by a large magnitude due to warranty issues and inflationary pressure on repair costs. Adding to the pricing pressure, the Ford Model E business recorded a $1.1 billion loss due to industry pricing pressures and wholesale declines. Profitability outlook wasn't encouraging as its full year operating income guidance missed. On the other hand, Ford blew past analysts' revenue expectations this quarter. Overall, this was a bad quarter for Ford.
Ford is down 3.1% since the beginning of the year, and at $9.35 per share, it is trading 35.7% below its 52-week high of $14.55 from July 2024. Investors who bought $1,000 worth of Ford’s shares 5 years ago would now be looking at an investment worth $1,133.
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