The 10-second takeaway
For the quarter ended June 30 (Q2), Ford beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased significantly. GAAP earnings per share increased significantly.
Gross margins shrank, operating margins grew, net margins expanded.
Ford reported revenue of $36.00 billion. The 12 analysts polled by S&P Capital IQ foresaw revenue of $35.25 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $33.21 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.45. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.37 per share. Non-GAAP EPS of $0.45 for Q2 were 50% higher than the prior-year quarter's $0.30 per share. GAAP EPS of $0.30 for Q2 were 15% higher than the prior-year quarter's $0.26 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 6.7%, 760 basis points worse than the prior-year quarter. Operating margin was 6.7%, 140 basis points better than the prior-year quarter. Net margin was 3.2%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $32.69 billion. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $136.14 billion. The average EPS estimate is $1.43.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 9,853 members out of 12,247 rating the stock outperform, and 2,394 members rating it underperform. Among 2,080 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,755 give Ford a green thumbs-up, and 325 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ford is outperform, with an average price target of $16.81.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Ford and recommends the following options:long January 2014 $10 calls on Ford and long January 2014 $10 puts on Ford. The Motley Fool owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.