Will Ford Motor Company (NYSE:F) Be Able To Beat Expectations This Time?
Although Ford Motor Company NYSE:F) has positioned itself well and stood firmly amid the financial crisis and bailout era, but the recent staggering Japanese Yen could give it a heartache. The company’s profits could come in a red zone, as the Japanese auto makers like Toyota and Honda Motor are gaining advantage grounds post the yen fall.
Ford’s Quarterly Earnings Preview
During the fourth quarter, analysts expect the company’s earnings per share to be 28 cents per share, which is a 9.7$ decline from its previous year’s EPS for the same quarter. While the revenue is estimated to be $35.15 billion, a marginal increase of 2% from its previous year’s revenue figure. Ford had already estimated its 2014 revenues to fall, but the question remains if the Ford’s bouquet of launches this year will be able to pull back it into longer term gains. If the results in the third quarter are to be compared against the estimates, than the company has done a fair job. The revenues were almost up by 12% during the third quarter. Ford was able to narrow down its losses in the European division and reported a positive market share gain in almost all of its regions.
Weighing down on the scenario of a declining currency in emerging markets, Ford’s negative outlook for the year’s profit stands right in a way. Apart from the currency rate fluctuations, Ford’s CFO Bob Shanks have other concerns like product recalls and pension obligations, which too have a significant role to play in bringing down profits. However, experts keep an encouraging review for Ford in the long term, as it has close to 23 launches scheduled in 2014. The success of these launches can be a major catalyst to drive Ford’s profits up. Moreover, the confirmed stay of CEO Alan Mulally for atleast 2014 promises a stable transition in the company’s leadership down the road