Ford (NYSE:F) stock shareholders are seeing some some fireworks this morning, but probably not the kind they were hoping for. Although the automaker just released monthly and quarterly sales figures demonstrating growth, Wall Street is decidedly unimpressed.
In a press release, Ford declared that it outperformed the industry in June. And indeed, the numbers seem to support the bulls, at least on the surface. In spite of chip supply constraints, the company’s sales for the month improved 31.5% year-over-year (YOY). Meanwhile, overall industry sales were down 11%. Furthermore, Ford’s monthly electric vehicle (EV) sales jumped 76.6% YOY, totaling 4,353 for June. Clearly, Ford is serious about its EV transition.
Extending the lookback period, Ford has also clearly shown quarterly improvement despite the challenging circumstances. Reportedly, the company’s second-quarter sales increased 1.8% YOY. That’s not a huge leap until you consider the supply-chain constraints Ford has had to face.
So, what could possibly have traders dumping F stock today? Despite the positive data, the results still missed estimates.
Why F Stock Fell Today
Oftentimes on Wall Street, companies can post decent results but still disappoint analysts and investors. This is apparently the case with Ford today. The automaker’s quarterly sales results didn’t meet expectations.
Ford’s Q2 sales improved 1.8% YOY. However, analysts had anticipated an increase between 3.3% and 5.1%. So, even with June’s impressive results, the company simply didn’t live up to analyst estimates.
Andrew Frick, Vice President of Sales, Distribution and Trucks, still noted the positives in the press release:
“F-150 Lightning was America’s best-selling electric truck in June in its first full month of sales, while our overall electric vehicle sales were up 77 percent over last year.”
Now, Ford’s trailing 12-month price-to-earnings (P/E) ratio is ultra-low at 3.9 times. Soon enough, F stock traders will discover whether today’s dip is a buying opportunity or the start of a deeper downtrend in the second half of 2022.
On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.