Ford Stock Gets Crushed on Guidance Cut
Last week, Ford Motor (NYSE: F) reported solid results for the third quarter. Nevertheless, shares of the No. 2 Detroit automaker plunged 6.6% on Thursday -- the day following the earnings release -- as investors reacted negatively to Ford's reduced full-year guidance.
Ford certainly has a lot of work to do to fix parts of its business that are struggling and adapt to an expected shift toward electric vehicles. That said, the headwinds it expects for the fourth quarter are likely transitory. As Ford continues to execute its turnaround strategy over the next couple of years, profitability should improve significantly.
Ford's revenue decreased slightly on a year-over-year basis last quarter, falling from $37.6 billion to $37 billion. However, its adjusted operating margin improved to 4.8% from 4.4% a year earlier, as some of the company's initial restructuring moves began to pay off and its Ford Credit subsidiary continued to post big profits.
Source Fool.com
