Ford stock fell in premarket trade Friday, after Ford Motor delivered third-quarter results after Thursday's close. The automaker ratified a tentative labor agreement with the United Auto Workers on Wednesday, potentially ending the workers' strike against the company, but leading management to withdraw the company's full-year guidance.
Earlier, General Motors had also pulled its 2023 guidance, citing the UAW strike.
Ford Motor Earnings
Estimates: Analysts expected Ford earnings to rebound 55% to 46 cents per share, according to FactSet. Supply issues that hurt the car industry last year have eased.
Third quarter revenue was seen growing 11.5%, year over year, to $43.937 billion. That would represent sales growth roughly in line with the second quarter's sales growth.
Results: Ford reported adjusted EPS of 39 cents per share, a 30% gain, but below views. Revenue of $44 billion, up not quite 12%, topped the analyst target.
Outlook: For 2023, analysts expected adjusted EBIT of $11.125 billion, near the low end of Ford's guidance for $11 billion-$12 billion. Management withdrew full-year guidance in its third-quarter report, following ratification of the new contract agreement with the United Auto Workers.
Wall Street sees free cash flow for the full year reaching $3.932 billion, far lower than the Ford guidance in July for $6.5 billion-$7 billion.
On a per-share basis, Wall Street sees 2023 EPS of $2.04, an almost 9% increase vs. 2022, FactSet shows.
UAW Strike: Ford, Union Reach Tentative Labor Deal
Ford Stock
Shares of Ford Motor retreated more than 3% in Friday's pre-opening stock market action. Ford stock is forming a cup-with-handle base with a 15.42 buy point. Much of the pattern has formed below the 50-day moving average. F stock hit its lowest level since May intraday. More generally, challenging market conditions discourage new purchases.
GM stock fell 1.6% Thursday, then inched up early Friday. After a surprise Q3 earnings gain, General Motors pulled full-year guidance and said it would go slower on electric vehicles.
Ford had already yanked an EV production target in July.
Stellantis rose 0l7% in early trade, after logging a 2% loss on Thursday. Chrysler parent Stellantis, which also owns Fiat and Peugeot, reports next week.
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UAW Strike, EV Shift
The Detroit 3 — Ford, GM and Stellantis — have now all seen strikes by UAW union workers cripple their largest and most profitable vehicle assembly plants.
The costly UAW strike adds to existing challenges.
Those include rising bond yields, high inflation and geopolitical risks, including the new Middle East war. That is weighing on the outlook for global vehicle sales and the global transition to electric vehicles, although Q3 U.S. new vehicle sales stayed strong due to pent-up demand.
Now even the Tesla growth story is starting to wilt, fraying investors' nerves further.
Heading into its Q3 earnings report, Ford stock slumped below key levels of support. It is down a fraction for the year. Its last breakout attempt in July failed.
