What Happened?

Shares of automotive manufacturer Ford (NYSE: F) jumped 13.2% in the afternoon session after the company reported third-quarter financial results that surpassed analysts' expectations for both profit and revenue. Ford posted adjusted earnings of $0.45 per share, 25.4% ahead of the consensus estimate of $0.36. Total revenue grew 9.4% year-on-year to $50.53 billion, also beating forecasts of $46.33 billion. The strong results were supported by a 5.6% increase in sales volumes compared to the same period last year. Investors were also encouraged by improved profitability, as Ford's operating margin expanded to 3.1% from 1.9% a year ago, and its free cash flow margin rose to 10.4% from 7.6%.

The shares closed the day at $13.84, up 12.4% from previous close.

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What Is The Market Telling Us

Ford’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for Ford and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 17 days ago when the stock dropped 7% as reports highlighted the severe, long-term impact of a fire at a key aluminum supplier's plant, raising concerns about significant production disruptions. The fire, which happened on September 16 at a Novelis facility in Oswego, New York, damaged the plant's hot mill. This part of the facility is a crucial source of aluminum for Ford's highly profitable F-Series pickup trucks. The market reacted to news that the plant's operations were not expected to restart until the first quarter of 2026, threatening to disrupt business for months.

Ford is up 43.1% since the beginning of the year, and at $13.81 per share, has set a new 52-week high. Investors who bought $1,000 worth of Ford’s shares 5 years ago would now be looking at an investment worth $1,720.

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