Ford Motor, Inc. (F) just reported another awesome quarter, demonstrating that the company’s turnaround strategy continues to accelerate. With rising estimates, a bullish next-year estimate and an attractive valuation, Ford isn’t running short on momentum.
Second-Quarter Results
Ford’s Q2 results from July 23 built on the company’s recent string of earnings surprises. Revenue for the period was up 17% from last year to $31.3 billion. When excluding the results of Volvo, which Ford has since sold, sales were up 30%.
Earnings for the period came in at 61 cents, well ahead of the Zacks Consensus Estimate of 40 cents, moving the company’s four-quarter earnings surprise to 112%.
Ford’s year-over-year comps are pretty amazing, with its pre-tax operating profit coming in at $2.9 million for the quarter, a $3.5 billion improvement from last year.
The company’s profound global footprint is also paying off, with its North American, South America, European and Asia/Africa all showing amazing gains from last year.
Balance Sheet Improving
Ford also continue to work on its balance sheet, reducing its total debt load by $7 billion to $27 billion, which will enable the company to save about $480 million in annual interest payments.
Estimates
Although its still a bit early for any pending estimate revision to hit the consensus, we have seen a steady trend higher over the last few months, with the current year up 32 cents in the last 90 days to $1.35 and the next-year estimate up 17 cents to $1.59, a solid 18% growth projection.
Valuation
In spite of the outstanding gains and general enthusiasm, Ford still has a ridiculous valuation, trading with a forward P/E of 9X compared to its peer average of 27X.
2-Year Chart
Shares of F recently rebounded from a key trend line after dipping lower with the market in May and June. The MACD below the chart also looks bullish, with the short-term moving average trading ahead of its long-term counterpart. Look for support from the trend line and the short-term low on any weakness, take a look below.
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FORD MOTOR CO (F): Free Stock Analysis Report
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