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Ford Third Quarter Earnings
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Ford Motor Company (NYSE:F) announced its results for the most recent quarter on October 30, 2012. Ford is an automaker that sells its cars and trucks throughout the world.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Surprising Earnings Results
The Numbers: Ford's EPS outpaced analyst estimates while the company's revenues came in line with predictions. The company reported adjusted net income of 40 cents per share versus the 30 cents per share estimate and revenues of $32.1 billion versus the $32.17 billion estimate. Revenue fell 2.9% from the same period last year. Last quarter marks the third in a row in which the company has seen falling revenue on a year-over-year basis. Ford reported profit of $1.63 billion during the third quarter. According to the reported number, this is down 1.2% from last year's figures. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 56.6% in the second quarter and 45.3% in the first quarter.
Management Quote: "The Ford team delivered a best-ever third quarter, driven by record results in North America," said Alan Mulally, chief executive officer, in a statement. "While we are facing near-term challenges in Europe, we are fully committed to transforming our business."
A Look Back: Net income has increased 1392.1% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 7065.8% from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the fourth quarter has moved down from 29 cents a share to 26 cents over the last seven days. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. For the fiscal year, the average estimate has moved down from $1.31 a share to $1.26 over the last 90 days.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Surprising Earnings Results
The Numbers: Ford's EPS outpaced analyst estimates while the company's revenues came in line with predictions. The company reported adjusted net income of 40 cents per share versus the 30 cents per share estimate and revenues of $32.1 billion versus the $32.17 billion estimate. Revenue fell 2.9% from the same period last year. Last quarter marks the third in a row in which the company has seen falling revenue on a year-over-year basis. Ford reported profit of $1.63 billion during the third quarter. According to the reported number, this is down 1.2% from last year's figures. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 56.6% in the second quarter and 45.3% in the first quarter.
Management Quote: "The Ford team delivered a best-ever third quarter, driven by record results in North America," said Alan Mulally, chief executive officer, in a statement. "While we are facing near-term challenges in Europe, we are fully committed to transforming our business."
A Look Back: Net income has increased 1392.1% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 7065.8% from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the fourth quarter has moved down from 29 cents a share to 26 cents over the last seven days. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. For the fiscal year, the average estimate has moved down from $1.31 a share to $1.26 over the last 90 days.
by
Investopedia Staff
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