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Msg  2428 of 2456  at  11/30/2023 11:57:51 AM  by

jerrykrause


Ford Issues Guidance and It's Really Good. The Stock Is Rising.

Ford Issues Guidance and It's Really Good. The Stock Is Rising.

. 
; New York
 
 

With union negotiations wrapped up , U.S. auto makers can again predict how the year will turn out.

Ford Motor on Thursday provided 2023 financial guidance . The company now expects to earn an operating profit of between $10 billion and $10.5 billion.

Wall Street has been modeling $10.5 billion. Prior guidance, given in July , called for operating profit to fall between $11 billion and $12 billion. Guidance was suspended in October, amid the contentious labor negotiations with the United Auto Workers union.

The guidance looks a little lower but it includes $1.7 billion in strike-related costs. If investors want to back that out, the guidance range becomes roughly $11.7 billion to $13.2 billion.

Given what's happened in the first three quarters of the year, Ford should generate some $2.5 billion in fourth-quarter operating profit, excluding any strike impacts. Wall Street is projecting about $900 million. Some analysts, however, probably are including strike estimates in their numbers.

However it all shakes out in the minds of investors, guidance looks solid.

Ford stock was up 2% in premarket trading while S&P 500 and Dow Jones Industrial Average futures were rising 0.2% and 0.5%, respectively.

Shares gained about 2% in Wednesday trading. General Motors helped. GM stock soared more than 9% after the company provided its own 2023 financial guidance .

GM expects to generate an operating profit between $11.7 billion and $12.7 billion in 2023. The previous outlook was $12 billion to $14 billion. Wall Street was projecting $12.2 billion, right in the middle of the new range.

GM also said that while higher labor rates will raise the cost of making each car by $500 to $600, it has plans to offset all of the increases over time.

Ford estimates the new labor deal will increase costs by about $800 per vehicle. Like GM, it said there were plans to offset the increase over time through "productivity and lower expenses."

Coming into Thursday trading, Ford and GM shares have fallen about 29% and 18%, respectively, since the start of July when labor issues started to impact investor sentiment.

Hopefully for investors, seeing solid guidance can help restore some confidence in the company and the stock.

 


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2430 Re: Ford Issues Guidance and It's Really Good. The Stock Is Rising. Jerseyvinny 1 11/30/2023 1:12:29 PM




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