Why Ford Stock Jumped Today
Ford Motor Company (NYSE: F) popped on Thursday after the auto giant reported strong growth in operating income and boosted its cash payout to shareholders by 50%. As of 2:55 p.m. ET, Ford's shares were up more than 5%.
Ford's revenue surged 50% year over year to $40.2 billion in the second quarter. The gains were driven by a 35% jump in wholesale shipments.
During the pandemic, the auto industry has been plagued by supply chain disruptions that have resulted in shortages for key inputs such as semiconductors. These shortages have made it difficult for Ford and other automakers to manufacture enough vehicles to satisfy the demand from consumers. Some of these production challenges have begun to abate in recent months. But with demand still outpacing supply, Ford has been able to charge higher prices for its cars and trucks.
Source Fool.com
