The Ford earnings report released Tuesday shows its best quarterly performance in six years at $ 2.1 billion and Ford stock is blowing up. The Ford Motor Co., the only Detroit automaker not bailed out of bankruptcy with low interest loans from the Federal government last year, has earned a profit for four consecutive quarters when its domestic rivals flounder. Although the new car sales market hasn't recovered yet, Ford Stock price and earnings report numbers shifted a year early from negative to positive just by slashing their costs and increasing sales.
Stock price for Ford soars
Monday, Ford stock hit a five year high at $ 14.57. Ford earnings report showed profit equaling 50 cents a share when Wall Street only expected 32 cents a share. Just a year ago, Ford stock traded at $ 1.91 a share, and also the earnings report for Ford showed a $ 1.4 billion loss which is a lot more than 60 cents a share in loss. Introducing new products, closing plants and eliminating tens of thousands of jobs is working like Ford boss Alan R. Mulally said it would when he took over four years ago. Presenting the Ford earnings report, Ford executives said the company expects to continue selling cars for positive cash flow in the instant future.
Ford earnings report helps to fuel production
Ford said it planned to build 625,000 cars within the United States and Canada in the second quarter, 9 percent more than the first quarter and 39 percent a lot more than exact same period a year ago. Later this year it plans to introduce new smaller and more efficient cars. Ford fans will be getting auto loans fairly soon for new versions of the Fiesta and Focus, plus a retooled Edge crossover and a a lot more fuel efficient Explorer SUV.
Ford stock analysis
The Ford stock has increased a lot more than 40 percent in 2010 if you analyze stock. Ford's market share within the United States rose up to 16.6 percent within the first quarter, which is apparently up 2.7 percent from the first quarter 2009. It outsold General Motors for the first time in 50 years in February. Adding to the cost cutting and increased focus on quality, Ford’s gamble to forgo the government bailout seems to have paid off in spades as the images, and sales, of GM and Chrysler have suffered. Also, Toyota’s recall of a lot more than nine million autos and also the ending publicity nightmare of the past six months probably hasn’t hurt Ford stock either.
Outlook for Ford Stock
The Ford stock outlook suggests that it probably won't sustain its current rally. The New York Times reports that Ford’s chief financial officer Lewis W.K. Booth said the business does not necessarily expect each of the next three quarters to be as strong as the first, particularly if an improving economy leads to higher interest rates later in the year. As it seemed to be on cue, Ford stock started falling following the company's earnings report was released on Tuesday. At noon Eastern time, Ford stock was already down about 6.5 percent at $ 13.50 per share. Monday’s closing price for Ford stock was the highest since January 2005. An issue with Ford stock outlook might be debt survival. The company still has much a lot more debt $ 34.3 billion, than money, $ 25.3 billion.
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