What's Going On With Ford Stock Thursday?
Portfolio Pulse from Adam Eckert
Ford Motor Co (NYSE:F) shares are trading lower after the company announced it expects to record a pre-tax remeasurement loss of approximately $1.7 billion in its fourth-quarter earnings report. The loss is due to pension and OPEB plans, with $500 million from U.S. pension plans, $900 million from non-U.S. pension plans, and $300 million from global OPEB plans. This will reduce net income by about $1.3 billion but will not affect adjusted EBIT or EPS. The remeasurement does not impact Ford's cash position or its 2024 pension contributions. Ford's Q4 results are expected on Feb. 6, with an earnings estimate of 13 cents per share on $39.562 billion in revenue.
January 25, 2024 | 1:40 pm
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Ford Motor Co anticipates a $1.7 billion pre-tax loss in Q4 due to pension/OPEB remeasurements, affecting net income but not adjusted EBIT/EPS. Stock price has declined in response.
The announcement of a significant pre-tax loss due to pension and OPEB remeasurements is likely to negatively impact investor sentiment in the short term, leading to a decrease in Ford's stock price. Although the remeasurement does not affect Ford's adjusted EBIT or EPS, the substantial loss to net income can be seen as a negative signal about the company's financial health, which may cause short-term price decline. The stock has already shown a decrease, which aligns with this analysis.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100