Ford stock to be blowing up while the Ford earnings report that was released on Tuesday shows its best quarterly performance in six years at $ 2.1 billion. The Ford Motor Co was the only Detroit automaker that wasn’t bailed out of bankruptcy with money loans from the Federal Government last year and has earned a profit for consecutive quarters while its domestic rivals flounder. Even though 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.

Soaring Ford Stock Price

Monday, Ford stock hit a five year high at $ 14.57. When Wall Street only expected it to gain 32 cents a share, it actually went up 50 cents a share according to the Ford earnings report. One year ago, Ford stock traded at $ 1.91 a share, and the Ford earnings report showed a loss of $ 1.4 billion–a net loss of 60 cents a share. Alan R. Mulally said it would work to introduce new products, close plants, and eliminate tens of thousands of jobs when he took over just four years ago as boss. Presenting the Ford earnings report, Ford executives said the company expects to continue selling cars for positive cash flow in the immediate future.

Production fueled by Ford earnings report

Ford said it planned to build 625,000 vehicles in the United States and Canada in the second quarter, 9 percent more than the first quarter and 39 percent more than same period a year ago. Later this year it plans to introduce new smaller and more efficient cars. Ford fans will be getting auto financing for new versions of the Fiesta and Focus, plus a retooled Edge crossover and a more fuel efficient Explorer SUV.

Ford Stock and an analysis

The Ford stock has increased more than 40 percent in 2010 if you analyze stock. Ford’s market share in the United States rose to 16.6 percent in the first quarter, up 2.7 percent from the first quarter 2009. In February, it outsold General Motors for the first time in 50 years. Adding to the cost cutting and increased focus on quality, Ford’s gamble to forgo the government bailout appears to have paid off in spades as the images, and sales, of GM and Chrysler have suffered. Also, Toyota’s recall of more than nine million vehicles and the ending publicity nightmare of the past six months probably hasn’t hurt Ford stock either.

Ford Stock and the outlook

The Ford stock outlook hints that the Ford stock price may not sustain its current rally. Ford’s chief financial officer Lewis W.K. Booth said the company 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 reported by the New York Times. As it seemed to be on cue, Ford stock began falling after the company’s earnings report was released on Tuesday. Ford stock price was down about 6.5 percent at $ 13.50 a share by noon Eastern Time. Monday’s closing price for Ford stock was the highest since January 2005. In the Ford stock outlook, debt survival might be an issue. The company still to have much more debt $ 34.3 billion, than cash, $ 25.3 billion.

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