Ford Motor Q4 earning estimated report january 27 2012

Ford Motor Q4 earning estimated report january 27 2012 : Ford Motor Co.'s earnings are expected to dip slightly in the fourth quarter, as anemic sales in Europe and flooding in Asia took their toll. But Wall Street isn't overly concerned. Analysts cite the company's newly reinstated dividend and improving U.S. sales among the reasons investors should consider Ford in the coming year. Ford releases its fourth-quarter results before the stock market opens Friday, jan 27 2012


WHAT TO WATCH FOR: Ford is expected to report its 11th-straight quarterly profit and show stable — if not spectacular — results. The company has already warned that it won't meet its goal of being profitable in all regions in the quarter because flooding in Thailand impacted Asian sales. And European sales have been anemic because of the debt crisis there. But Ford saw sales and market share gains in the U.S., Russia, India and elsewhere that should offset those losses.

Ford is no longer experiencing the kinds of wild swings it did before its restructuring six years ago. In 2005, for example, it earned $2 billion, but then lost $12.7 billion the following year. Instead, it's focused on steady, profitable growth, and it's showing increasing confidence that growth will continue. The company said last month that it will resume paying a 5-cent dividend in March, more than five years after it halted dividend payments because of financial problems.

The company also plans to announce Friday that it's placing billions of dollars' worth of tax credits and other deferred assets back on its books now that it's making money again. The change dates to 2006, when the company put $2.2 billion in assets in a valuation allowance account because it couldn't take advantage of them if it wasn't making money. The assets in the account eventually totaled $15.7 billion.

Now, Ford is reversing course. It's expected to put around $13 billion in assets back on its books because it anticipates using them to offset future taxes. The change is mostly on paper for now, but it could impact Ford's 2012 earnings, since the company will likely be paying a higher tax rate.

WHY IT MATTERS: Ford is the second-largest automaker in the U.S. and one of the largest companies in the world, with 164,000 employees. And car sales are a strong indicator of economic health, since consumers must be confident enough to invest in a car.

WHAT'S EXPECTED: Analysts polled by FactSet expect Ford to earn 25 cents per share in the fourth quarter on revenue of $32.6 billion. For the full year, analysts expect earnings of $1.86 per share on revenue of $127.31 billion.

LAST YEAR'S QUARTER: Ford earned 5 cents per share in the fourth quarter of 2010, but that was largely because of a $960 million charge to pay down debt. Without one-time charges, Ford would have earned 30 cents per share. Revenue was $32.5 billion. For all of 2010, Ford earned $1.66 per share on revenue of $120.9 billion. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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