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Ford (NYSE:F) Beats On Q2 Earnings

$F #Ford #Earnings #USA #NYSE #Auto #Manufactures #Stocks #Trading

Ford
Ticker: NYSE:F
Price: $6.74

Company News

Ford reported second-quarter earnings after the markets closed on Thursday, and carmaker beat estimates.

Ford lost $0.35 per share on an adjusted basis, with revenue of $19.4 billion.

Things are better than expected, but they still aren’t great. Sales fell from $38.9 billion in the second quarter of 2019. The pandemic has hit car sales across the globe hard.

Chinese new-car sales bottomed in February but rebounded in the second quarter, ending roughly flat year over year. Europe and North America were hit by the pandemic later than China. European Union new-car sales fell roughly 50% year over year. U.S. new-car sales fell about 33% year over year in the second quarter.

Ford’s Chinese business lost $100 million in the second quarter—an improvement year over year. Ford’s European business swung from a $100 million profit to a $700 million loss in the quarter. North American profits fell from a gain of $1.7 billion in 2019 to a loss of $1 billion in 2020.

The auto maker said it had more than $39 billion in cash at end of the quarter, partly due to $10 billion in new debt during the three-month period, and this week repaid $7.7 billion against revolving credit lines.

“The company’s almost $40 billion in liquidity today is expected to be sufficient to maintain or exceed a target cash balance of $20 billion through the second half of this year, even if global demand declines or there is another major wave of pandemic-related plant closures,” Ford said in a statement.

Business Summary

Ford Motor Company is a global automotive and mobility company.

The Company’s business includes designing, manufacturing, marketing, and servicing a full line of Ford cars, trucks, and sport utility vehicles (SUVs), as well as Lincoln luxury vehicles.

The Company operates in four segments: Automotive, Financial Services, Ford Smart Mobility LLC, and Central Treasury Operations.

The Automotive segment primarily includes the sale of Ford and Lincoln brand vehicles, service parts, and accessories across the world.

The Financial Services segment primarily includes its vehicle-related financing and leasing activities at Ford Motor Credit Company LLC. Ford Smart Mobility LLC is a subsidiary formed to design, build, grow, and invest in emerging mobility services.

The Central Treasury Operations segment is primarily engaged in decision making for investments, risk management activities, and providing financing for the Automotive segment.

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 6.41.

The projected upper bound is: 7.45.

The projected lower bound is: 6.09.

The projected closing price is: 6.77.

Candlesticks

During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 23 white candles and 26 black candles for a net of 3 black candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 4 falling windows in the last 50 candles–this makes the current falling window even more bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 55.2996. This is not an overbought or oversold reading. The last signal was a sell 7 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 55.62. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 35 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 4. This is not a topping or bottoming area. The last signal was a sell 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 12 period(s) ago.

Rex Takasugi – TD Profile

FORD MOTOR CO closed down -0.180 at 6.740. Volume was 45% below average (neutral) and Bollinger Bands were 10% narrower than normal.

Open    High     Low      Close      Volume
6.740   6.825    6.670    6.740      10,095,320
Technical Outlook
Short Term:        Overbought
Intermediate Term: Bullish
Long Term:         Bearish
Moving Averages: 10-period      50-period      200-period
Close:           6.84           6.35           7.19
Volatility:      31             67             71
Volume:          14,275,597     17,243,690     15,472,655

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FORD MOTOR CO gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.

FORD MOTOR CO is currently 6.3% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of F.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on F.N and have had this outlook for the last 7 periods.

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