"After years of being dogged by a poor stock price, Ford Motor Co. ( NYSE: F) shares are up 32% this year, compared to 14% for the S&P 500. And the stock has a yield of 4.6%. Ford's earnings were fine, neither disappointing nor spectacular. Revenue rose 9% to $50.5 billion. Per share earnings increased from $o.22 to $0.60. Although Ford has set a recall record this year that may never be broken, the talk about warranty damage to the bottom line has quieted down."
"The one thing the market is besotted with is the company's pullback from electric vehicles (EVs). Although CEO Jim Farley has expressed tremendous anxiety about Chinese EVs, he has lost the temptation to chase the Chinese. For the time being, tariffs are holding that competition in check. Ford has apparently given up future walking. Part of giving up future walking is to admit, publicly or not, that much of Ford's investment in EVs was a mistake."
Ford shares have risen 32% year-to-date, outperforming the S&P 500 and offering a 4.6% yield. Quarterly results showed revenue up 9% to $50.5 billion and per-share earnings rising from $o.22 to $0.60. A record level of recalls has not translated into sustained warranty damage to profits. Management has pulled back from ambitious EV targets amid concerns about Chinese competition and tariff dynamics, and Ford will end production of the F-150 Lightning. U.S. gasoline-powered vehicle sales remain strong, with Ford holding 13% market share and F-Series sales up 11.4% year-to-date.
Read at 24/7 Wall St.
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