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Summary

  • Ford's stock price is nearly flat since its 4th quarter earnings announcement.
  • Ford's U.S. sales scared many, but investors must look globally.
  • Based on sales volume, Ford has a good opportunity to beat earnings.

Ford's (NYSE:F) earnings announcement for Q1 2014 is fast approaching. The company's stock has barely moved since late January.

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Source: Yahoo Finance

Analysts are expecting 31 cents per share in what is expected to be a year of transition into new products.

Source: Sentieo

At the heart of Ford's earnings will be its ability to generate revenue. On revenue, Ford is expected to generate flat sales for 2014, therefore a safe expectation for Q1 is zero sales growth.

Source: Sentieo

In the United States, bad weather was to blame for Ford's bad January and February sales. While this may cause people to worry to about the company's financial performance, I believe investors should review multiple markets to see how sales are performing. To do this, I reviewed Ford Corporate web pages for the United States, India, China, and Europe. Additionally, I captured the past 15 months of sales data.

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In order to better understand these numbers on a quarterly basis, I condensed the data.

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Despite rough weather in the U.S., Ford managed to sell 8.84% more vehicles in these markets in the first quarter of 2014 versus the same quarter a year ago. Does this mean that Ford's revenue will increase by 8.84%? Doubtful.

A vehicle sells in the U.S. at a different premium than in China or India, however, I believe enough sales growth has occurred internationally to make up for Ford's domestic performance.

Source: Ford's Sales Performance Will Drive An Earnings Beat