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Fairview HK: The vehicle firm shares first stagnated when the company revealed its Q3 results
The shares of the vehicle firm Ford Motor Company (F) first stagnated when the company revealed its third-quarter results, but then got a boost from new economic statistics.
While F exceeded Wall Street's top and bottom-line expectations, investors were undoubtedly concerned that the firm made a net loss and is still dealing with supply chain concerns.
However, the automobile stock eventually recovered as investors took into account the latest economic statistics, which indicated better-than-
When added all together, F's stock fell by as much as 3.3% this morning but was up by 1.2% as of 12:15 p.m. ET.
They said that overall sales grew by 10% to $39.4 billion in the third quarter, above analyst's average expectation of $36.2 billion.
The company's non-GAAP (adjusted) profits per share of $0.30 were much lower than the $0.51 per share reported in the prior quarter, but it still topped Wall Street's projection of $0.27 per share for the period.
F made a big business move in the quarter, announcing that it will abandon its autonomous car technology company Argo AI, which it co-owned with Volkswagen, and instead research lower-level semi-autonomous technologies in-house.
Furthermore, F stated that its most recent financial performance was impacted by "supply chain constraints,"
The corporation also stated that it spent around $1 billion on "excessive" supplier payments.
F anticipates completing the cars and delivering them to dealers in the fourth quarter.
F's stock price fell today as investors were concerned that the company's high supplier prices and supply chain concerns would persist. Investors have been largely negative about the automobile sector in recent years, as rising material costs and supply chain constraints have hampered manufacturers.
However, one bright light for investors today was the announcement that U.S. GDP increased by 2.6% in the third quarter, above expert's average forecast of 2.3%.
This helped calm investor concerns about the impending recession and it is probable that F's stock rose slightly following its recent financial reports.
Fairview HK Limited is one of the foremost privately owned Asia-Pacific orientated, boutique wealth management firms in Hong Kong. We offer our services to a selected group of families, family offices, institutions and fund managers, you may visit our website https://fairviewhk.com/