Analyst Domenic Martilotti says his upwardly revised guidance reflects strong performance at Ford Motor Credit Corp. on lower-than-expected credit losses and higher off-lease vehicle residual values. He says additional upside potential exists in the fourth quarter from both revenue and the cost side of the earnings equation.
Martilotti believes the new Five-Hundred and the Mustang could be hits, and he thinks there's room for another $300 million of cost reductions. He raised the second-quarter and 2004 EPS estimates by 15 cents -- the amount by which Ford raised guidance -- to 50 cents and $1.95, respectively. He maintains the peer perform rating.