Ford's $1B Inflation Hardship

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Ford's $1B Inflation Hardship

Shares of the Ford Motor Company (NYSE: F) dropped 4.42% in after-hours trading on Monday after the automobile giant posted an unexpected financial update.

Details: Ford said that it is experiencing supply shortages for certain car parts and higher payments to suppliers due to inflation. This has resulted in an extra 40,000 to 45,000 vehicles that are stuck in the factories and awaiting those missing car parts. Ford hopes to sell those vehicles in the fourth quarter.

The Bad: Inflation-related supplier costs in the quarter are now expected to run about $1 billion higher than originally expected, according to Ford. The company now expects its adjusted earnings before interest and taxes (EBIT) to be between $1.4 billion to $1.7 billion in the quarter.

The Good: Despite these problems, Ford reaffirmed its full-year 2022 adjusted EBIT to be between $11.5 billion to $12.5 billion.

Bigger: Shares of General Motors (NYSE: GM) dipped 1.64% on the news as well.

Stock Price: Ford’s stock is down 31% this year, but is about even in the past 30 days.

Final Thoughts: Ford reports earnings on October 26.

Notables

Notable Earnings Today: Apogee Enterprises (Nasdaq: APOG), Aurora Cannabis (Nasdaq: ACB), Arthur J. Gallagher & Co. (NYSE: AJG), Stitch Fix (Nasdaq: SFIX).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Here Today Brewery & Kitchen (StartEngine), MindWise (MicroVentures), Early Bird Vegan (SMBX).

Notable Economic Events Today: Building Permits (8:30 a.m. ET), Housing Starts (8:30 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

Cognex Raises Guidance Before Analyst Day

Shares of Cognex (Nasdaq: CGNX) jumped 5.68% in after-hours trading on Monday after the machine vision company raised its financial guidance.

Details: Cognex expects revenue to be between $195 million and $205 million, up from the previous guidance of $160 million to $180 million.

Fulfilling: The company attributed this growth to fulfilling customer demands sooner than expected after it replenished inventory that was previously destroyed in a fire.

Quote: “We are pleased that our hard work to procure new components has enabled us to fulfill customer demand faster than we expected,” said Robert J. Willett, Chief Executive Officer of Cognex.

Final Thoughts: Cognex, which has seen its stock price drop 45% this year, will host its Analyst Day today.

Equity Crowdfunding Spotlight: VORSHEER INC.

Briefly describe your business. VORSHEER INC. manufactures camping and emergency prep trailers with a $4.5 million sales history and an established nationwide dealer network. We have aligned with influential groups including Black Rifle Coffee, Diesel Brothers, and Field Craft.

What are the terms of the investment for your campaign? Investors can invest on the StartEngine Reg CF platform.

What makes your startup special? We believe we will succeed because we are tenacious about design, quality, marketing, and brand awareness. We are also actively engaged in planning and future designs and models. In this industry, innovators tend to do well.

Trends to Watch

Hippo-Critical: Hippo Holdings Bd. Approves 1-for-25 Reverse Stock Split, Shares Fall 5% (MarketWatch)

May the North be With You: Chevron offering minority stakes in three Alaskan oilfields (Reuters)

Moment of Zen: Zendesk shareholders vote in favor of $10.2 bln go-private deal (Financial Post)

Outflows: Crypto Investors Yanked Money From ETH Products Despite a Smooth Ethereum Merge (CoinDesk)

Time to Close the Door: Home-Flipper Opendoor Hit With Losses in Echo of Zillow Collapse (Bloomberg)

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