Balanced View on Ford - Analyst Blog


On Jun 11, 2014, we issued an updated research report on Ford Motor Co. ( F ).

Ford posted earnings per share of 25 cents in the first quarter of 2014, down from 41 cents in the first quarter of 2013 (all excluding special items). Moreover, the company missed the Zacks Consensus Estimate of 32 cents.

Revenues in the quarter, however, nudged up 0.8% to $35.9 billion, exceeding the Zacks Consensus Estimate of $34.49 billion. The improvement was attributable to market share gains in the Asia-Pacific region, particularly China.

Ford is benefiting from various factors, including market share gains in the Asia-Pacific region (particularly China), its global expansion plans, efforts to make the European business profitable, efficient capital deployment, the success of the One Ford plan and the continued focus on hybrid cars.

However, there are several headwinds as well, such as an expected decline in pre-tax profits, operating margin and cash flows in 2014, weakness in North and South America, frequent product recalls and rising expenses. Moreover, Ford will lose production of over 90,000 F-Series trucks when its plants shut down to retool for the production of the new aluminum truck. This will lead to a fall in truck sales, leading to lower profits and lesser market share for Ford.

Ford currently carries a Zacks Rank #3 (Hold).

Key Picks from the Sector

Some better-ranked automobile stocks worth considering are Fox Factory Holding Corp ( FOXF ), Gentherm Incorporated ( THRM ) and Tower International, Inc. ( TOWR ). All these stocks carry a Zacks Rank #1 (Strong Buy).

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FORD MOTOR CO (F): Free Stock Analysis Report

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TOWER INTL INC (TOWR): Free Stock Analysis Report

FOX FACTORY HLD (FOXF): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: F , THRM , TOWR , FOXF

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