Ford’s management may have been surprised by the reaction to its earnings. They were poor, but the media and analysts had a sharply negative view. And, there is the question of how long CEO Jim Farley can keep his job if Ford has another disastrous quarter.
Criticisms ranged from a CNBC warning that it might remove Ford from its investing club if it does not do better next quarter. That was minor compared to the drop in the stock, which reached 13%. Several media outlets said that the comment by Ford’s CFO that it had left $2 billion on the table was not an excuse, given the huge amount of money involved.
This is the most severe situation Ford’s management has faced since Farley took over. Ford has had supply chain problems before. It has mispriced its cars with component cost issues. It has had significant recall problems. It has had a stock that has performed poorly. But, Ford did not give any reasonable solutions for its difficult position.
The poor results had one other effect. Ford was viewed as part of the large companies making modest progress as they moved into the EV market. (These are the most efficient cars on the market.)
Ford had its promising Ford F-150 Lightning and Mustang Mach-E. Each carried the names of iconic Ford brands. Ford is now viewed as having dropped out of that group while trying to catch up.
Get Our Free Investment Newsletter
The CNBC investment club people are right about one thing. Another bad quarter tells whether Ford will be left far behind.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Source: Read Full Article