Ford Motor Company (F) Stock on a Consistent Decline Here’s the Reason

Ford Motor
Ford Motor

Ford Motor Company (F), a company that manufactures and services a range of Ford automobile products worldwide, has declined 5.13% in premarket trading session and consequently is trading at $18.87 at the time of the writing. During Thursday’s regular trading session, the stock declined by 3.59% and closed the day at $19.89. The consistent decline in stock price has come after the announcement of quarterly results by the company.

Ford Motor Q4 2021 Results

On Thursday, F released the results for the fourth quarter of the fiscal year 2021. The quarter ended on 31st December 2021. The company generated total revenues of $136.3 billion during the quarter against $127.1 billion for the same quarter of fiscal 2020. The total costs and expenses bore by the company during the three months were $131.8 billion against $131.5 billion for the same three-month period of 2020. The net income generated by the company during the period was $17.9 billion (or net income of $4.49 and $4.45 per basic and diluted share) against the net loss of $1.27 billion (or the net loss of $0.32 per basic and diluted share) for the same period of 2020.

Fiscal Outlook

Alongside the quarterly results, F also released the outlook for fiscal 2022. The company had an optimistic view regarding 2022 as it believed that the strong customer appeal for the company’s products would cause provide a financial boost to the company. The company expects the full year 2022 EBIT to be in the range of $11.5 to $12.5 billion. That would be an increase of 15% to 25% when compared with 2021. The company believed that the adjusted free cash flow for the fiscal year 2022 is expected to fall in the range of $5.5 to $6.5 billion.

Executive Commentary

President and CEO of F, Jim Farley, while commenting on the results said that the financial performance of the company has remained of critical importance during the year 2021. The company is proud that the customers have developed a positive narrative regarding the company’s EV approach. The company hopes to double its worldwide EV manufacturing capacity and it expects that the fully electric vehicles would represent 40% of its product mix by the year 2040.

Future Outlook for Ford Motor

Stats reveal that during the last three months, F stock hasn’t experienced much fluctuation, as evident from an increase of approximately 6% in the stock price during the said period. Looking ahead, the analysts believe that the stock has got several negative signals and hence, is expected to perform weakly during the upcoming few days.


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