Ford earnings reveal 'room for improvement': Analyst
Ford's (F) stock is declining following the release of mixed earnings results, with the automaker beating revenue expectations but falling short on earnings. S&P Global Ratings senior director and sector lead for autos, business & technology services Nishit Madlani joins Asking for a Trend to analyze the car company's second quarter results.
Madlani identifies a recurring theme in Ford's recent earnings: progress and cost reduction have been "slow and inconsistent relative to peers" in areas such as warranty expenses. He emphasizes that this "reduces cushion for underperformance."
The analyst points out that Ford faces significant challenges, including quality issues and inflationary pressures on prices. While acknowledging gradual progress, Madlani stresses that "there's a lot of room for improvement." He urges the company to identify "the root causes" of these persistent issues to achieve more consistent gains.
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This post was written by Angel Smith