Ford Motor Co. (NYSE: F) shares drove off a cliff on Friday, splashing mud on the broader market on their way down as the automaker reported a 79% drop in fourth quarter profits in its latest earnings report. Ford shares closed down $2.54 (a brutal 13.5% slide) as a result. But one bad date shouldn’t sour a good long-term relationship with investors — and there’s a lot to love about Ford stock long term.
First, let’s talk about Friday’s sell-off. The company’s 2010 Q4 net income fell to $190 million (5 cents a share), down from $886 million (25 cents a share) in the same quarter of 2009. Wall Street had been head over heels for the stock, which has shot up about 60% in the past year, was expecting a racy 48 cents a share. The Ford earnings miss was ugly, and so was the decline for F stock. It was Ford’s first earnings miss in two years, but it missed by a mile. (more)
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