Ford Motor (NYSE:F) will release its second quarter earnings on Wednesday, July 25, 2012. Analysts have become increasingly bearish on the company over the last month, with the consensus analyst estimate slipping from 35 cents a share to the current prediction of earnings of 28 cents a share.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Can Earnings Guidance Accurately Predict The Future?
What to Expect: Three months ago, the consensus estimate was 41 cents. For the fiscal year, analysts are expecting earnings of $1.33 per share.
Ford is expected to report revenue of $32.19 billion for the quarter, down by 9.4% from last year's figure of $35.53 billion. Ford is expected to report revenue of $128.44 billion for the fiscal year.
Company Performance: In the first quarter, Ford broke a three-quarter growth streak with a year-over-year decline in revenue. After rising 6.6%in the fourth quarter of the last fiscal year, 10.6% in the third quarter of the last fiscal year and 1.3% in the second quarter of the last fiscal year, it fell 2% in the most recent quarter.
The company's earnings have been rising for the last eight quarters, and for the last four, net income has increased year-over-year by an average of 1752.6%.
The P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Investment Valuation Ratios: Price/Earnings Ratio
Since April 24, 2012, the stock price has dipped 19.1% to $9.21 from $11.39. The price is within 16 cents of its 52-week low of $9.05, which was set on October 4, 2011. Ford's stock price is on a downward streak. The share price has fallen $1.36 since June 6, 2012.