Ford Motors Missed Fourth Quarter Earnings Expectations

Ford Motors Missed Fourth Quarter Earnings Expectations

When it comes to the automobile industry, there are many big companies in this sector which are trying to survive in everlasting fierce competition and ford motors is one of those companies. Recently the giant automobile making company Ford Motors released its fourth quarter’s earnings report, which shows that the company couldn’t meet analysts’ expectations of earning per share. The company reported 12 cents per share earnings in the fourth quarter with a revenue of more than $39.7 billion.

Earlier of this result, getting officially declared analysts said the company would manage to earn 17 cents per share and revenue of $39.6 billion. Even though Ford Motors did manage to surpass expectations of earning more income but overall, the EPS did not meet up to its expected level. Past result of this company indicates an entirely different story because, at the same time a year ago, Ford Motors managed to give an earnings per share of 30 cents along with 41.8 billion dollars of revenue.

Jim Hackett, who is the president and CEO of Ford Motors, said lack of excellent operation efficiency is the primary reason behind why the automobile giant company did not perform well. There were high expectations by both investors and the management of the company, but it seems Ford Motors couldn’t meet up to its operational expectations. Now the top management of the company is trying to make some necessary changes to its operating efficiency by announcing a new set of vehicles coming next year. All big automobile companies have decided to abandon the traditional way of creating cars and now focusing more on emerging new electric cars. As a result of such a poor performance, Ford’s shares went down by approximately 10 per cent during yesterday’s day trading. The automobile company is trying to focus on building Electrified versions of the Lincoln Corsair and Ford Escape/Kuga, which might be a game-changer in future.

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