When a company posts a quarterly profitof 30 cents a share and Wall Street is expecting 48 cents, something is seriously screwed up. And you can blame it one of three things:
1) Poor guidance from the company.
2) Analysts missing the boat on key data.
3) The earnings results came in much lower than expected and are truly a surprise to wall street and analysts.
So who do you blame for Ford missing the street estimate of 4Q earnings by 18 cents?
Ford says there are four factors that may explain why analysts were off. They include:
* lower volume
* higher investment costs for manufacturing and advertising a new model launch (Explorer)
* high commodity costs
* Ford Europe being unprofitable.
All fair points.