Federer will now play world number one Andy Roddick in the semi-finals.
The other semi-final is already set with Andre Agassi taking on Germany's Rainer Schuettler.
"Coria or Roddick, a tough match no matter who I play," said Federer. "But first of all, they have to battle it out and that will not be an easy match for either one of them."
Runner-up to Australia's Lleyton Hewitt at last season's final in Shanghai, a clearly weary Ferrero stumbled through this year's final without a win going 0-3, the unhappy French Open champion delivering his best shots as he exited the Westside Tennis Club.
"I think this tournament, this Masters Cup is not the same as I played before," said Ferrero, joining the growing number of players who have been critical of the facilities and organisation at the Westside Tennis Club.
"I played in Sydney, I played in Shanghai and there it was much better than here... the courts, the organisation."
"NOT SPECIAL"
"I think this tournament is not what we expect. It is not special."
"The Masters is always special and this tournament wasn't this time."
Federer needed just 54 minutes on a sun-baked
"I think if I win all my matches until the end of the tournament I can still end number two in the world," said Federer, who also advanced to the semi-finals of last year's event falling to eventual champion Lleyton Hewitt.
"That should have been motivation enough for this match."
"Especially because he's ranked ahead of me and I lost to him in Madrid last time, it was really no problem to get motivated for this match."
Ferrero and Federer had arrived in Texas locked in a battle with Roddick for the coveted year-end number one ranking.
But Roddick clinched the honour on Wednesday when Agassi beat Ferrero.
While Federer, Roddick and most of the other players here are looking forward to well-deserved vacations, a drained Ferrero will now head halfway around the world for Spain's Davis Cup final against Australia in Melbourne before wrapping up his season.
"I'm not feeling very good right now," said Ferrero. "I played three very bad matches."
"So I have to think right now about Australia and forget about this tournament."
"I came here with a chance to be number one and to try and play good but I couldn't do it."