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Ford Motor Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 30 cents per share, a decline of 34.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 32 cents. Between one and three months ago, the average estimate moved down. It has risen from 29 cents during the last month. For the year, analysts are projecting profit of $1.27 per share, a decline of 15.9% from last year.
Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 2 cents, reporting net income of 30 cents per share against a mean estimate of profit of 28 cents. In the first quarter, the company exceeded forecasts by 4 cents with net income of 39 cents versus a mean estimate of profit of 35 cents.
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A Look Back: In the second quarter, profit fell 56.6% to $1.04 billion (26 cents a share) from $2.4 billion (59 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 6.5% to $33.21 billion from $35.53 billion.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.76 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
Stock Price Performance: Between July 31, 2012 and October 24, 2012, the stock price rose 93 cents (10.1%), from $9.24 to $10.17. The stock price saw one of its best stretches over the last year between December 28, 2011 and January 9, 2012, when shares rose for eight straight days, increasing 12.2% (+$1.28) over that span. It saw one of its worst periods between April 26, 2012 and May 8, 2012 when shares fell for nine straight days, dropping 10.6% (-$1.26) over that span.
After experiencing income drops the past two quarters, the company is hoping to use this earnings announcement to rebound. Net income dropped 45.3% in the first quarter and then again in the second quarter.
On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 2% in the first quarter and dropped again in the second quarter.
Analyst Ratings: With 11 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.
Wall St. Revenue Expectations: Analysts are projecting a decline of 0.1% in revenue from the year-earlier quarter to $31.08 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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