Earnings Update: Ford, PG, Barclays, and Zynga

Earnings Update: Ford, PG, Barclays, and Zynga

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On Wednesday, many companies posted their earnings. Here is a recap:

Ford (F)

The American automaker beat expectations and posted earnings of $0.41 a share opposed to the predicted $0.37 a share for the most recent quarter. This increase was driven by North American sales, where an improved housing market has spurred the demand for trucks like the F-150. Total revenue rose from $32.4B to $35.8B. This was the highest pretax profit for Ford since 2000, coming on sales volume increasing 17%.

It wasn’t all sunshine for Ford, CEO Alan Mulally explained to the media and investors during a conference call today. The company expects to lose around $2B in Europe this year and saw a loss of $218M for the quarter in South America. Profits for Asian/African markets were $6M. Ford closed down 0.2% Wednesday.

P&G (PG)

Proctor and Gamble, the world largest consumer products company, posted an increase in earnings in comparison to the same quarter last year. This year’s earnings of $0.88 a share from $2.57B in profit was a nice gain compared to the $0.82 a share from $2.41B of profit. Sales increased 2% to $20.6B.

The increased profits were helped by the cutting of nonmanufacturing jobs, which reduced costs. P&G plans to continue to cut these jobs at a rate of 2-4% through 2016. They are also cutting manufacturing and marketing costs. These cost-saving measures were a major contributor to the bottom line, said CEO Bob McDonald.  Shares traded down 5.9% on Wednesday.

Barclays (BCS)

The UK based bank missed expectations and saw profits fall by 25% compared to the quarter from the year before. Profits dropped from $3.66B to $2.7B. Barclays investments banking side provided 74% of the profit, around $2B, signaling weakness in other aspects of the bank.

Barclays is in the midst of a 5-10 year restructuring plan, called “Go-To” to help revamp the bank. They are feeling fines and fees imposed totaling $450M for allegedly manipulating the LIBOR, $3B related to sales of their Payment Protection Insurance, and $600M in relation to Interest Rate Swaps they sold. Shares traded down 1.3% on Wednesday.

Zynga (ZNGA)

The online gaming company beat expectations, although those expectations predicted earnings of $-0.03 a share. Zynga posted earnings of $0.01 a share for the quarter on $230M in revenue, which is down from last year’s corresponding time frame when they posted $0.06 share. Revenue was down 30% to $230M, which is down from last year’s $329M.

The trouble is that users were down 13%. This figure could provide a grim outlook for investors about Zynga’s future, which is user based. However, the stock was up 5.31% at market close on Wednesday.

Use the Compar-O-Matic to see changes in average analyst recommendation for the companies mentioned above:

1. Ford Motor Co. (F, Earnings, Analysts, Financials): Develops, manufactures, distributes, and services vehicles and parts worldwide. Market cap at $52.49B, most recent closing price at $13.36.
 

 

2. Procter & Gamble Co. (PG, Earnings, Analysts, Financials): Provides consumer packaged goods in the United States and internationally. Market cap at $225.47B, most recent closing price at $82.54.
 

 

3. Barclays PLC (BCS, Earnings, Analysts, Financials): Provides various financial products and services in Europe, the United States, Africa, and Asia. Market cap at $58.91B, most recent closing price at $18.32.
 

 

4. Zynga, Inc. (ZNGA, Earnings, Analysts, Financials): Develops, markets and operates online social games as live services played over the Internet and on social networking sites and mobile platforms. Market cap at $2.5B, most recent closing price at $3.18.
 

-Ryan Horch, Kapitall

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