Ford Motor Co.’s better-than-expected quarterly earnings and raised guidance posted on Thursday were overshadowed by a delay in a key milestone for its electric vehicle production, sending the stock down more than 4% on Friday.
The company’s bonds also came under pressure, as the following chart from data-as-a-service provider BondCliQ Media Services shows. So far, there has been slightly better selling on the day with decent volume for a summer Friday, as indicated by the blue line. The net flows are for all Ford bonds since 8.00 a.m. Eastern.
Ford net customer flow (intraday). Source: BondCliQ Media Services
That compares with the pattern seen in the last 10 days, as shown in the chart below.
Most active Ford issues with customer net flow. Source: BondCliQ Media Services
Ford’s
F,
quarterly profit was about three times higher than last year’s quarter and revenue rose 12% to sail past consensus estimates, as MarketWatch’s Claudia Assis reported.
But the stock came under pressure after investors zeroed in on its new timetable for achieving a production rate of 600,000 EVs in 2024; when it reported first-quarter earnings in May it said it would reach that milestone by the end of this year.
The company’s EV production growth has been “disappointing,” CFRA analyst Garrett Nelson said Thursday.
Ford earned $1.9 billion, or 47 cents a share, in the second quarter, nearly three times higher than in the year-ago period and a 4% margin, the company said. Adjusted for one-time items, the automaker earned 72 cents a share.
Revenue rose 12% to $45 billion, Ford said, and its cash and liquidity are “persistently strong.” The revenue increase included a 39% rise for Ford’s EV business.
Analysts polled by FactSet expected Ford to report adjusted earnings of 54 cents a share on sales of $43.17 billion.
See also: Ford takes a jab at from-the-brink GM Bolt, says it will make more hybrids
This post was originally published on Market Watch
