Ford Stock Jumps on Strong Q4 Earnings and 2024 Outlook, News of Special Dividend
22 minutes ago
Ford (F) shares rose more than 3% Wednesday after the company reported better-than-expected fourth-quarter earnings, projected strong 2024 earnings, and announced plans to return more cash to shareholders.
Ford posted earnings per share of 29 cents, down from 51 cents a share a year earlier but more than double analysts’ expectations. Fourth-quarter revenue rose 4% to $46 billion, also beating expectations.
For 2024, Ford forecast adjusted earnings of $10 billion to $12 billion before interest and taxes, compared to $10.4 billion in 2023. Those projections are at the higher end of the $10 billion to $10.5 billion the company predicted in November when it was hampered by a six-week strike from the United Auto Workers union.
Ford also announced a regular first-quarter dividend of 15 cents a share plus a supplemental dividend of 18 cents, to be paid on March 1. The company said it targets distributions to shareholders of 40% to 50% of adjusted free cash flow, which the automaker pegs at between $6 billion and $7 billion in 2024.
Despite Wednesday’s gains, Ford shares are down about 7% over the past year.
Snap Stock Dives On Disappointing Q4 Sales, Soft 2024 Outlook
1 hr 39 min ago
Shares in Snap (SNAP) plunged more than 30% Wednesday morning after the parent of instant messaging app Snapchat reported top-line numbers that came in below analysts’ expectations and issued a soft outlook for the current quarter as the conflict in the Middle East has contributed to slower digital advertising.
The company’s fourth-quarter revenue of $1.36 billion increased 5% from a year earlier but missed Wall Street’s expectation of $1.38 billion, marking the sixth consecutive quarter the Santa Monica, California-based company has reported single-digit growth or sales declines. Snap said the ongoing war between Israel and Hamas contributed to the weaker-than-expected revenue during the period.
Looking ahead, the company’s first-quarter revenue guidance range of $1.095 billion to $1.135 billion represents growth of 11% to 15% over last year’s corresponding quarter, though the midpoint of that band still falls short of the $1.117 billion Street forecast.
Source: TradingView.com.
Since bottoming out at around $8.50 in late September, SNAP trended higher for several months before tracking sideways into the 50-day moving average. During this post-earnings sell-off, monitor if the stock’s price can close above the key $12 level. This area on the chart finds a confluence of support from a multi-month horizontal trendline and the rising 200-day moving average.
Snap was down 34% at $11.48 about an hour after the opening bell.
-Timothy Smith
NYCB Stock Continues to Slide Following Liquidity Update, Board Changes
2 hr 17 min ago
Shares of New York Community Bancorp (NYCB) sank as much as 10% in early trading Wednesday, extending losses spurred by the lender’s unexpected fourth-quarter loss and concerns about its commercial real estate exposure.
NYCB on Tuesday night shared an update on its deposits and liquidity to reassure investors, spooked by credit-rating agency Moody’s decision to downgrade the bank’s debt to junk status.
“Despite the Moody’s ratings downgrade, our deposit ratings from Moody’s, Fitch and DBRS remain investment grade,” said CEO Thomas Cangemi in a press release. “The Moody’s downgrade is not expected to have a material impact on our contractual arrangements.”
And early Wednesday the firm appointed board member Alessandro DiNello as Executive Chairman, saying DiNello would “work alongside President and CEO, Thomas R. Cangemi, and the rest of the senior executive leadership team, to improve all aspects of the Bank’s operations.” DiNello joined NYCB’s board of directors in 2022 when the firm acquired Flagstaff Bank, of which DiNello had served as CEO since 2013.
NYCB stock has lost more than 60% of its value in the last month, much of its decline coming after the company reported a surprise loss on Jan. 31. Following the Moody’s downgrade, shares tumbled more than 20% yesterday to close at $4.20, their lowest price since 1997.
Stocks Making the Biggest Moves Premarket
3 hr 10 min ago
Gains:
- Fortinet Inc. (FTNT): Shares of the cybersecurity firm jumped more than 8% after it topped Wall Street estimates with its quarterly earnings and billings.
- Ford Motor Co. (F): The carmaker’s shares gained more than 5% after it beat earnings estimates and forecast a better-than-expected 2024.
- Warner Bros. Discovery (WBD): Shares of the entertainment company rose more than 3% after it said it was teaming up with Disney’s ESPN (DIS) and Fox (FOXA) to launch a sports streaming service. Disney shares were down about 1% in premarket trading, while Fox gained nearly 5%.
Losses:
- Snap Inc. (SNAP): Shares of the social media company tumbled 30% after it reported lower-than-expected fourth-quarter revenue, citing headwinds from conflict in the Middle East.
- Alibaba Group Holding Ltd. (BABA): American depositary receipts of the Chinese e-commerce giant slid more than 4% after it also missed expectations with its fourth-quarter sales.
- Uber Technologies Inc. (UBER): Shares of the ride-hailing software company fell 2% despite it beating on the top and bottom lines with its quarterly report. The stock’s price doubled in the 12 months leading up to Wednesday’s results.
Stock Futures Higher
3 hr 31 min ago
Futures contracts connected to the Dow Jones Industrial Average were 0.2% higher in premarket trading on Wednesday.
S&P 500 futures rose 0.3%.
Nasdaq 100 contracts gained 0.4% before the opening bell.
