Ford shares fall for a fifth session in a row on Wednesday, company projects weaker full-year 2017 financial results

According to a press release by Ford Motor Company (F), its full-year 2017 pre-tax profit, automotive operating margins and cash flow would be lower in comparison with a year ago, which sent the companys shares down almost 2% during yesterdays trade.

Ford shares closed lower for a fifth consecutive trading session on Wednesday. The stock went down 1.86% ($0.21) to $11.06, after touching an intraday low at $10.95, or a price level not seen since June 8th ($10.91). In the week ended on July 23rd the shares of the global automotive company lost 1.28% of their market value compared to a week ago, which marked the first drop in the past four weeks. The stock has neutralized earlier gains and is now down 1.16% so far during the current month, following a 0.63% increase in June. The latter has been the first monthly gain since February, but yet, the smallest one since April 2016. For the entire past year, the shares of the NYSE-listed company lost 13.91%.

Global sales shrank by 43 000 vehicles during the second quarter, with a drop by 8 000 vehicles being witnessed in the United States. As revealed in the statement, Fords full-year 2017 margin in North America is expected to decrease compared to a year earlier, as a result of $1.2 billion in additional commodity costs, engineering expenditures and costlier price cuts.

Fords net income was reported to have surged to $2.04 billion ($0.51 per share) during the latest quarter from $2 billion ($0.49 per share) during the same period of 2016. However, these better results were not supported by higher profit from vehicle sales, but instead by a lower tax rate of 15%.

Fords earnings per share, excluding special items, were reported at $0.56 during the second quarter, while exceeding the median analyst forecast ($0.43 per share).

Meanwhile, the auto maker now projects that its full-year 2017 adjusted earnings would fall within the range between $1.65 and $1.85 per share. Ford has already booked $0.96 per share in adjusted earnings. In comparison, analysts had expected $1.51 per share in full-year adjusted earnings.

Yesterday Jim Hackett, the companys new CEO, pledged to reconsider the auto makers marketing, spending and investment strategy during his first 100 days.

According to CNN Money, the 27 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $12.50, with a high estimate of $17.00 and a low estimate of $9.00. The median estimate is a 13.02% surge compared to the closing price of $11.06 on July 26th.

The same media also reported that 16 out of 27 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 8 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Ford stock are presented as follows:

R1 – $11.08
R2 – $11.10
R3 (Range Resistance – Sell) – $11.12
R4 (Long Breakout) – $11.18
R5 (Breakout Target 1) – $11.24
R6 (Breakout Target 2) – $11.27

S1 – $11.04
S2 – $11.02
S3 (Range Support – Buy) – $11.00
S4 (Short Breakout) – $10.94
S5 (Breakout Target 1) – $10.88
S6 (Breakout Target 2) – $10.85

By using the traditional method of calculation, the weekly levels of importance for Ford Motor Company (F) are presented as follows:

Central Pivot Point – $11.61
R1 – $11.75
R2 – $11.98
R3 – $12.12
R4 – $12.27

S1 – $11.38
S2 – $11.24
S3 – $11.01
S4 – $10.79