Why Ford's Stock Fell 10.7% in February
Beginning last month on an inauspicious note, Ford (NYSE: F) reported its fourth-quarter 2022 financial results after the market closed on Feb. 2. The report failed to rev up investors' engines, and the following day, shares closed 7.6% lower, contributing to a slide that extended through the month. According to data from S&P Global Market Intelligence, shares of Ford fell by 10.7% in February.
Besides the company's Q4 earnings and 2023 forecast, production delays and negative sentiment from Wall Street contributed to the month's sell-off.
With adjusted earnings per share of $0.52 in Q4, Ford came up short of the $0.62 that analysts had expected. It also missed its own guidance. At the end of 2021, the company forecast 2022 adjusted earnings before interest and taxes (EBIT) of $11.5 billion to $12.5 billion. Looking ahead to 2023, investors seem to be uninspired with management's adjusted EBIT forecast range of $9 billion to $11 billion. An expected decline in free cash flow also concerned investors. Whereas Ford generated adjusted free cash flow of $9.1 billion in 2022, management projects this will decline to about $6 billion in 2023.
Source Fool.com
