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Ford Stock Is Falling After Earnings Miss, Disappointing Outlook - Barron's

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Detroit-based auto maker Ford Motor reported fourth quarter and full year earnings that missed Wall Street’s estimates. What’s more, management’s earnings outlook for 2020 is below what analysts modeled.

The company reported 12 cents in per share earnings from $39.7 billion in sales. Wall Street wanted 17 cents per share earnings. The company shipped almost 1.4 million light vehicles this quarter.

Times still look tough for Ford (ticker: F). Shares are down $1, or 10.9% in after hours trading. The after market move wipes out small year over year gains in the share price. Ford stock is up about 5.5% over the past 12 months, as of Tuesday’s close, lagging behind comparable gains of the Dow Jones Industrial Average and S&P 500.

“Financially, the company’s 2019 performance was short of our original expectations, mostly because our operational execution,” CEO Jim Hackett said in the company’s news release. “We recognize, take accountability for and have made changes because of this.”

Still, Hackett touted Ford’s strategic progress in 2019. The company signed agreements with Volkswagen (VOW.Germany) and EV truck startup Rivian to improve Ford’s electric vehicle technology and future product offerings. Ford also released details about the coming launch of its all-electric Mustang Mach-E sports car.

Ford lost money in every region outside of North America last year. Operating profit in its home market, however, was $6.6 billion. A good result, but still down $1 billion compared with 2018.

Ford’s Chinese operations lost $200 million in the fourth quarter. That's not great, but losses shrank year over year. Management said It is too early to estimate any impact from the Wuhan coronavirus outbreak.

Ford Motor credit reported roughly flat earnings year over year for the fourth quarter and full year 2019. The auto finance division’s performance has been consistent for several quarters. That’s good news. What's more, credit metrics were called “healthy” by Ford management. That’s more good news for Ford. It’s also positive for companies lending to U.S. consumers.

The company will host a conference call for investors and analysts at 5 p.m. Eastern time.

Write to Al Root at allen.root@dowjones.com

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