Down 25%, Is Ford Stock a Buy Now?
Ford Motor Company (NYSE: F) just updated investors with its third-quarter results, and it has investors on the fence regarding what's to come from the automaker. Overall sales grew 11% year over year, but increasing costs cut into cash flow and profits.
But with sales growing, the United Auto Workers (UAW) strike tentatively ending, and Ford's stock price down 25% from a recent peak in early July, investors might be thinking it's time to buy. If you do buy, don't expect to be rewarded from growth in Ford's Model e, the electric vehicle (EV) segment.
Ford missed analyst estimates in the third quarter for both operating profit and earnings per share. Much of that can be blamed on the costs it is absorbing with its EV segment. While sales grew strongly -- though from a low base -- the company lost what amounted to $36,000 per EV it sold in the third quarter. That per-vehicle loss grew from $32,000 in the second quarter. The diagram below highlights the company's third-quarter financial results.
Source Fool.com
