(F) Ford Motor Company – Balance Sheet Improving – Sales Were up 22% From Last Year

February 5th, 2010

Ford Motor Co. (F) is pressuring its 52-week high on a bevy of good news that includes a return to profitability in its recent Q4 results and strong January sales data.

Company Description

Ford Motor Company designs, manufactures and services cars and trucks worldwide. The company was founded in 1903 and has a market cap of $37 billion.

Ford continued its upward ascent from the brink of financial collapse with excellent Q4 and full-year results on Jan 28 that saw the company swing back to profitability for the first time since 2005.

Q4 and Full-Year Results

For the quarter, sales were up 22% from last year to $35.4 billion. Earnings also came in strong at 43 cents, 79% ahead of the Zacks Consensus Estimate. For the full year, net income totaled $2.7 billion, or 86 cents per share, up from a loss of $14.8 billion, or $6.50 per share, last year.

Ford noted that its results were helped by its commitment to controlling costs, with Q4 down $500 million from last year and full-year costs down $5.1 billion, far ahead of the company’s $4 billion goal.

Balance Sheet Improving

Ford’s balance sheet is also on the mend, with cash and equivalents up more than $10 billion to $34.3 billion against debt of $34.3 billion.

January Sales

Adding to the chorus of optimism was Ford’s January sales numbers, showing an impressive 25% gain on the heels of Toyota’s recent problems with recalls.

Estimates

Estimates have been on the upswing for most of the last few months, but popped higher on the good quarter and January sales results. The current year is up 25 cents in just the last week while the next-year estimate has added 21 cents in the same time to $1.38, a bullish 72% growth projection.

Valuation

In spite of recent gains and growing enthusiasm, shares of Ford still have value, trading with a forward P/E multiple of 13X, a discount to the overall market.

The Chart

Ford has jumped back to within striking distance of its 52-week high on the good quarter after a recent pull back. Take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service.

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(F) Ford Motor Company – Balance Sheet Improving – Sales Were up 22% From Last Year

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(F) Ford Motor Company – Balance Sheet Improving – Sales Were up 22% From Last Year

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