On Jun 11, 2014, we issued an updated research report on
Ford Motor Co.
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
Tower International, Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
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FORD MOTOR CO (F): Free Stock Analysis Report
GENTHERM INC (THRM): Free Stock Analysis Report
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FOX FACTORY HLD (FOXF): Free Stock Analysis
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