Ford stock is blowing up and the Ford earnings report released Tuesday shows its best quarterly performance in six years at $ 2.1 billion. Ford Motor Business has earned a profit for consecutive quarters when its rivals flounder and is also the only Detroit automaker that wasn’t bailed out of bankruptcy with money loans from the Federal Government last year. By slashing costs and increasing sales, Ford stock price and Ford earnings report numbers have shifted from negative to good a year ahead of schedule, even as the market for new cars has yet to recove

Soaring Ford Stock Price

Monday, Ford stock hit a five year high at $ 14.57. Ford earnings report showed profit equaling 50 cents a share when Wall Street only expected 32 cents a share. One year ago, Ford stock traded at $ 1.91 a share, and the Ford earnings report showed a loss of $ 1.4 billion--a net loss of 60 cents a share. Introducing new products, closing plants and eliminating tens of thousands of jobs is working like Ford boss Alan R. Mulally said it would when he took over four years ago. For executives said that in the urgent future, they plan to continue to sell cars for optimistic cash flow while they were presenting the earnings report.

Ford earnings report fuels production

Ford said it wants to build 625,000 cars in the United States and Canada in the second quarter, 9 percent more than the first quarter and 39 percent more than same period a year ago. It plans to introduce new models later this year with the aim to capture a bigger piece of the growing market for smaller, a lot more fuel efficient cars. Ford fans should probably be getting auto financing here in the near future for new versions of the Fiesta and Focus, plus a retooled Edge crossover and a more fuel efficient Explorer SUV.

Ford Stock and an analysis

The Ford stock has increased a lot more than 40 percent in 2010 if you analyze stock. Ford’s market share in the United States rose up to 16.6 percent in the first quarter, which is apparently up 2.7 percent from the first quarter 2009. It outsold General Motors in February for the first time in 50 years. Adding to the cost cutting and increased focus on quality, Ford's gamble to forgo the government bailout seems to have paid off in spades as the images, and sales, of GM and Chrysler have suffered. Toyota's recall of at least nine million cars and also the resulting publicity nightmare of the past six months probably didn’t hurt Ford stock either.

Ford stock outlook

The Ford stock outlook suggests that it probably won’t sustain its current rally. The New York Times reports that Ford's chief financial officer Lewis W.K. Booth said the business does not necessarily expect each of the next 3 quarters to be as strong as the first, particularly if an improving economy leads to higher interest rates later in the year. As it seemed to be on cue, Ford stock started falling following the company’s earnings report was released on Tuesday. Ford stock price was down about 6.5 percent at $ 13.50 a share by noon Eastern Time. Given that January 2005, Monday’s closing price on stock was the highest. An issue with Ford stock outlook might be debt survival. The business still seems to have much more debt $ 34.3 billion, than cash, $ 25.3 billion.