Ford Earnings Preview

Three months ago, Ford reported terrible earnings. Part of the reason is that the company didn’t “manage” its expectations well. That’s why Wall Street felt so let-down. The next earnings report is due out tomorrow.

Ford Motor Co. (F), the second-largest U.S. automaker, may report its largest first-quarter profit since 1998 tomorrow as fuel-efficient new models helped sales gain amid surging U.S. gasoline prices.

Profit excluding some items may have climbed to 50 cents a share, according to the average of 14 analysts’ estimates, from 46 cents a year earlier. Net income may have risen to $2.1 billion, the average of three analysts’ estimates compiled by Bloomberg, and the most since a $17.6 billion profit in the first quarter of 1998.

Chief Executive Officer Alan Mulally has worked to boost fuel economy, and sales of more efficient new models such as the Fiesta subcompact and Explorer sport-utility vehicle have risen as gas prices gained this year. Investors remain concerned that surging fuel costs may hurt consumer confidence and car sales, said Gary Bradshaw, a fund manager at Hodges Capital Management.

“I don’t feel as good as I would if I was filling up at the pump for $2.89 instead of $3.89 a gallon,” said Bradshaw, whose Dallas-based firm owns about 200,000 Ford shares. “I still think Ford’s lineup will weather the storm. They’re better prepared this time.”

Posted by on April 25th, 2011 at 8:33 am


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