Ford Motor Company Earnings: Streak of Two Straight Profit Declines Snapped

S&P 500 (NYSE:SPY) component Ford Motor Company (NYSE:F) reported its results for the fourth quarter. Ford is an automaker that sells its cars and trucks throughout the world.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Ford Motor Company Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the auto manufacturer rose to $13.6 billion ($3.40 per share) vs. $190 million (5 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Rose 6% to $34.6 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: F reported adjusted net income of 20 cents per share. By that measure, the company fell short of mean estimate of 27 cents per share. It beat the average revenue estimate of $32.35 billion.

Quoting Management: “We delivered strong results for the full year as we continued to serve our customers around the world with best-in-class vehicles and make progress toward our mid-decade goals,” said Alan Mulally, Ford president and CEO. “Despite the continued uncertainty in the external environment, the strength of our North American and Ford Credit operations allows us to continue to invest for future growth and develop outstanding products with segment-leading quality, fuel efficiency, safety, smart design and value.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 10.6% to $33.05 billion in the third quarter. The figure rose 1.3% in the second quarter from the year earlier and climbed 4.9% in the first quarter from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 2 cents, and in the second quarter, it was ahead by 5 cents.

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the third quarter, net income fell 2.3% while the figure dropped in the second quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is 42 cents per share, down from 48 cents ninety days ago. For the fiscal year, the average estimate has moved up from $1.81 a share to $1.84 over the last sixty days.

Competitors to Watch: General Motors Company (NYSE:GM), Toyota Motor Corp. (NYSE:TM), HONDA MOTOR CO., LTD. (NYSE:HMC), Tesla Motors Inc (NASDAQ:TSLA), Navistar Intl. Corp. (NYSE:NAV) and Spartan Motors, Inc. (NASDAQ:SPAR).

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com