Ford Soars as It Lifts 2021 Profit Forecast Again, Resumes Dividend

Ford Soars as It Lifts 2021 Profit Forecast Again, Resumes Dividend

Ford (NYSE:F) is trading down 2.70% at 15.51

Ford (NYSE:F) stock climbed more than 10% in Thursday’s premarket after the automaker raised its annual profit forecast for the second time in as many months while deciding to resume paying its dividend.

The company said semiconductor availability remains a challenge, but it was markedly improved from the second quarter, propelling sequential increases in wholesale shipments and revenue of 32% and 33%, respectively.

The company now expects its adjusted earnings before interest and taxes to be $11 billion at midpoint. Ford will pay its quarterly dividend of 10 cents a share on December 1. It had suspended the pay out in March 2020 at the time of the pandemic.

While Ford sees the chip shortage easing, Bloomberg quoted Chief Financial Officer John Lawler as saying that it could still extend into 2023. Ford’s factories won’t run at full tilt until the end of next year, he said. “We are seeing about 10%” sales growth in 2021, Lawler said.

Lawler warned of a hit from rising commodity prices. They are expected to be up $3 billion to $3.5 billion for 2021, and could increase another $1.5 billion in 2022, a note by the company quoted him as saying.

On technical fronts Ford (NYSE:F) RSI stood at 49.86 and currently stock is trading below all MA. So, SELL position can be taken with following target and stoploss:

TRADE SIGNAL – : Ford (NYSE:F) – SELL: 15.51, TARGET: 15.35, STOP LOSS : 15.80

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