Toyota Motor Corp. (NYSE: TM) was supposed to be in good shape to resist the economic slump, so given how far its fiscal second-quarter profits plunged, what does that suggest for struggling Detroit automakers Ford Motor Co. (NYSE: F) and General Motors Corp. (NYSE: GM), which are scheduled to report tomorrow?
Ford is expected by analysts surveyed by Thomson Financial to report a net loss of 93 cents per share, compared to a loss of a penny per share the same period of last year, on revenue of $28 billion. The company posted a much greater-than-expected loss in the previous quarter, but has also posted surprise profits in two of the past five quarters.
The company's revenues last year were $172.5 billion and its net loss totaled $2.7 billion. Its long-term EPS growth forecast is only 9.8%, much less than the sector average and the S&P. No surprise, the consensus recommendation of analysts remains to hold Ford.
The share price has fallen almost 60% in the past three months, and closed Thursday at $1.98, just 18 cents above the 52-week low.
GM is expected to report a net loss of $3.51 per share, compared to the year-ago loss of $2.88 per share, on revenue of $39.3 billion. The company's per-share loss in the previous quarter missed estimates by $8.59.
The world's biggest automaker's revenues were $181.1 billion last year, and its net loss totaled $38.7 billion. The company's long-range EPS growth forecast is 7.3%, also less than the S&P 500. Analysts on average rate GM as underperforming.
The share price is down 53.2% in the past three months, and closed Thursday at $4.80, which is 80 cents higher than its 52-week low.
For more news about the automakers that could influence the results, see BloggingStocks' Ford coverage and GM coverage.
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Reader Comments (Page 1 of 1)
11-06-2008 @ 7:33PM
Joe Henderson said...
A good possibility we are going to see all major car manufacturers go into Chapter 7 or 11. This deletes any liability for pensions. insurance, etc. and voids any work contracts....then watch a real downward spiral as tens of thousands of stateside jobs go and they remarked re-badged overseas stuff. MAYBE THEN THEY CAN COMPETE WITH KIA AND OTHER FIRMS OFFERING GOOD WARRANTIES AND A DECENT CAR.
11-06-2008 @ 9:22PM
Greg said...
I think the government should help GM.
If it wasn't for GM giving incentives after
9/11 where would our economy have been then!
Only if the top board executives take a pay cut and no more bonuses to keep people there.
People don't need bonuses, now all they want is a job!
No more giving people,such as Steve Miller,who took Delphi Corp. into bankrupty and making a mockery of the court system for their own gain causing the loss of 10 of thousands of jobs!
Or the Limited Partnership who bought Chrysler, all they wanted to do is make money off this company, by selling off pieces, or have an IPO, to make money for their own personal gain, either closing plants and laying people off to get the greatest value out of it, not caring what happensto the people they lay off!
11-06-2008 @ 9:28PM
Sam said...
Tomorrow may be a good day to buy ETFs like SSO.
I think GM is certainly going to bring the sentiment down
Sam
http://tickertoday.blogspot.com
11-07-2008 @ 1:10AM
Rick said...
goodbye GM/Chysler (not good buy).
It's time to cut our losses on these dinosaurs, it'll be painful but less so than continuing to bail them out, and needing to repeat the effort and stump up another few billion in several years time.
11-07-2008 @ 9:21AM
Polly said...
Remember how Obama supporters came up with $650,000,000? For the good of the country how about now if they now reach into their pockets to save Ford and GM? Be patriotic!