Wednesday, May 5, 2010

Ford Stock Price And Earnings Soaring Beyond Expectations

Ford Earnings And Stock Soaring Beyond Expectation

Ford stock is blowing up and also the Ford earnings report released Tuesday shows its best quarterly performance in six years at $ 2.1 billion. The Ford Motor Co., the only Detroit automaker not bailed out of bankruptcy with paydayloans from the Federal government last year, has earned a profit for four consecutive quarters when its domestic rivals flounder. By slashing costs and increasing sales, Ford stock price and Ford earnings report numbers have shifted from negative to optimistic a year ahead of schedule, even as the market for new cars has yet to recover.

Ford stock price soars

Ford stock hit a five-year high Monday at $ 14.57. When Wall Street only expected it to gain 32 cents a share, it actually went up 50 cents a share as outlined by the Ford earnings report. Just a year ago, Ford stock traded at $ 1.91 a share, and the earnings report for Ford showed a $ 1.4 billion loss which is more than 60 cents a share in loss. When Ford boss Alan R. Mulally took over four years ago, he said introducing new products, closing plants, and eliminating tens of thousands of jobs is working. For executives said that within the instant future, they plan to continue to sell cars for positive money flow when they were presenting the earnings report.

Ford earnings report helps to fuel production

Ford said it planned to build 625,000 automobiles within the United States and Canada within the second quarter, which is 9 percent a lot more than the first quarter and 39 percent a lot more than same period a year ago. It plans to introduce new models later this year with the aim to capture a bigger piece of the growing market for smaller, more fuel efficient cars. Ford fans could be getting auto loans quite 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

An analysis of Ford stock will show an increase in price of more than 40 percent so far in 2010. Ford's market share in the US rose to 16.6 percent in the first quarter, which is up 2.7 percent from the first quarter 2009. It outsold General Motors in February for the very first time in 50 years. In addition to cost cutting and 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. Toyota’s recall of more than nine million vehicles and the resulting publicity nightmare of the past six months probably hasn’t hurt Ford stock either.

Ford stock outlook

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 within the year. Tuesday, following the earnings report was released, stock began falling as though on cue. As of noon Eastern Time the Ford stock price was down about 6.5 percent at $ 13.50 a share. Closing price for stock on Monday was the highest given that January 2005. In the Ford stock outlook, debt survival may be an issue. The company still has much more debt $ 34.3 billion, than money, $ 25.3 billion.

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