Ford Motor Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Ford Motor (NYSE:F) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. Ford is an automaker that sells its cars and trucks throughout the world.

Ford Motor Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 26 cents per share, a rise of 30% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 29 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 26 cents during the last month. Analysts are projecting profit to rise by 10.6% compared to last year’s $1.35.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of 40 cents per share versus a mean estimate of net income of 30 cents per share.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Stock Price Performance: Between October 25, 2012 and January 23, 2013, the stock price rose $3.49 (33.6%), from $10.39 to $13.88. The stock price saw one of its best stretches over the last year between December 14, 2012 and December 26, 2012, when shares rose for eight straight days, increasing 15.2% (+$1.69) 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.

Analyst Ratings: With 12 analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

Wall St. Revenue Expectations: Analysts predict a rise of 1.7% in revenue from the year-earlier quarter to $33.17 billion.

Here’s how Ford Motor traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Key Stats:

An income boost this time around would be welcome news after profit drops in the past three quarters. Net income fell 45.3% in the first quarter, by 56.6% in the second quarter and again in the third quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 2% in the first quarter and 6.5% in second quarter before falling again in the third quarter.

A Look Back: In the third quarter, profit fell 1.1% to $1.63 billion (41 cents a share) from $1.65 billion (41 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 2.6% to $32.17 billion from $33.05 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.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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